New Zealand Agency Illegally Spied on Kim Dotcom

WELLINGTON, New Zealand (AP) — A New Zealand spying agency apologizes after acknowledging it broke the law by spying on Megaupload founder Kim Dotcom. employees were arrested earlier this year for alleged fraud. Now the New Zealand government has apologized for illegal spying. (AP)

The Government Communications Security Bureau is authorized only to spy on foreigners. However, a report released Thursday by Prime Minister John Key found the agency spied on the German-born Dotcom after he’d gained New Zealand residency in 2010.

The New Zealand agency was assisting U.S. authorities who are trying to extradite Dotcom. U.S. authorities accuse Dotcom of racketeering and money laundering by facilitating massive copyright piracy on his file-sharing website.

Key said Thursday he’s “very disappointed” the agency failed to understand its legal obligations.

The agency isn’t saying what information it gathered, so it’s not clear what effect the development will have on the case.