While Germany had been reconsidering those contracts for some time, they faced additional scrutiny after former National Security Agency contractor Edward Snowden revealed the extent of electronic eavesdropping by the U.S. intelligence agency and Britain's GCHQ.
German authorities were particularly irked by reports that the NSA had targeted Chancellor Angela Merkel.
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Berlin has also proposed building more secure networks in Europe to avoid having to rely on American Internet companies that manage much of the electronic traffic circulating the globe.
"There are indications that Verizon is legally required to provide certain things to the NSA, and that's one of the reasons the cooperation with Verizon won't continue," said Plate.