BERLIN, June 26 (UPI) —
The German government has canceled its Internet contract with the U.S. telecommunications company Verizon over data security fears.

There is concern in Germany that U.S. firms provide data to authorities, and anger over allegations that conversations on the telephone of German Chancellor Angela Merkel were intercepted by the U.S. National Security Agency. The phone-tapping claim was made by former NSA contractor Edward Snowden, and earlier in June, Germany announced a formal investigation of the allegations.

Verizon has contracted with several German government agencies to provide Internet services. The contracts expire in 2015.

There has been no accusation of involvement, on Verizon’s part, in the phone-tapping controversy, but U.S. technology firms doing business in Germany have been subject to increased scrutiny and suspicion.