Microsoft allegedly assisted the National Security Agency in intercepting user communications, the Guardian has posted.
According to reports, Microsoft assisted in the circumvention of its encryption for various communication services, including Oulook.com, Hotmail, Skype, and cloud storage service SkyDrive.
The collection of communication data was executed using a program codenamed Prism, which purportedly collects information from Google, Microsoft, Facebook, and Apple.
According to the report, Microsoft also coordinated with the Federal Bureau of Investigation to assist the NSA in its data collection.
An individual warrant is not required by the secret surveillance court to collect these communications, so long as the NSA holds a 51 percent belief a target is not a US citizen and is not on US soil at the time of collection.
Earlier this year, Microsoft revealed Skype would be integrated into its next-gen Xbox One console. The console will support Skype video calling using Kinect voice and gesture controls to execute onscreen actions.