Whistleblower Edward Snowden has provided proof that Global technology giant Microsoft has been working closely with US intelligence agencies, including the National Security Agency and the FBI, to make sure all of their customers can be spied on, according to the Guardian newspaper.
The newspaper said that the documents provided by Snowden show that Microsoft helped the NSA bypass the company's encryptions to intercept web chats on Outlook.com.
It also reported that Microsoft worked with the FBI this year to allow the NSA easier access to its cloud storage service SkyDrive, and that after Microsoft's purchase of Skype, the NSA accessed a new capability that tripled the number of video calls it collected via Prism.
Microsoft denied the allegations in a statement released on Thursday.
"We only ever comply with orders about specific accounts or identifiers, and we would not respond to the kind of blanket orders discussed in the press over the past few weeks," the statement said.
"Microsoft does not provide any government with blanket or direct access to SkyDrive, Outlook.com, Skype or any Microsoft product."
The company has previously said that during a six-month period in 2012 it handed over records on about 32,000 user accounts, but can not say more because of bans imposed by the US government which prohibits all technology companies from talking about their activities.
Meanwhile, the Guardian journalist at the centre of the Snowden revelations said his source told him he never gave any information to the Russian or Chinese governments.
Glenn Greenwald said in an article published on Wednesday on the Guardian's website that he spoke to Snowden over the weekend and on Tuesday and that the leaker "vehemently denied" rumours that his data had been acquired by Moscow or Beijing.