The UK's Intelligence and Security Committee also said there is nothing to suggest that Britain's eavesdropping agency GCHQ, the Government Communications Headquarters, is using PRISM to get around restrictions on domestic espionage.
"It has been alleged that GCHQ circumvented UK law by using the NSA's PRISM programme to access the content of private communications," the committee said in a three-page statement posted to its website. "From the evidence we have seen, we have concluded that this is unfounded."
The companies involved have since denied offering the NSA wholesale access to their data, but the news that GCHQ also uses PRISM sparked concern in Britain that privileged access to US companies' data had been used to leapfrog UK law.
The committee, chaired by Conservative lawmaker and former minister Malcolm Rifkind, said its review of the evidence left it satisfied that GCHQ was operating within the law. It also flatly denied that PRISM was linked to data mining, the name given to the process of sifting through mountains of data to look for patterns and hunt for suspicious behaviour.
Britain's government welcomed the statement, but civil liberties groups expressed reservations.
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