In a report published Thursday, the Guardian said the documents show the NSA was helped in circumventing Microsoft's encryption because the agency was concerned that it would not be able to intercept chats conducted on the new Outlook.com. The newspaper said this was not Microsoft's first step toward assisting NSA around the company's encryption, as the agency already had "pre-encryption stage access" to e-mail sent via Outlook.com, including Hotmail.
In 2013, Microsoft worked with the FBI to allow NSA access to the company's SkyDrive cloud storage service, according to the documents. Additionally, Microsoft reportedly helped the FBI's Data Interception Unit address any issues with Outlook.com's feature that allowed users to create e-mail aliases. The NSA's Prism, the documents said, commonly shared its collection information with the FBI and the CIA, a routine activity that was described as a "team sport."
Although it's not yet clear if it is related to Microsoft's May 2011 purchase of VoIP communications company Skype, the NSA noted in the documents in July 2012 that it had obtained a new capability for tripling its ability to collect Skype video calls through its recently revealed Prism surveillance program.
Microsoft has issued a statement that its upgrading or updating of products does not absolve itself "from the need to comply with existing or future lawful demands." It repeated its previous position that it delivers information about its users "only in response to government demands and we only ever comply with orders for...