The Deutsche Telekom eavesdropping controversy became public in late May 2008 after reporting by the German weekly Der Spiegel. Prosecutors in Bonn opened investigations into eight former members of the company’s advisory and executive boards and former employees. The allegations centered on surveillance of journalists and members of Deutsche Telekom’s supervisory bodies during 2005 and 2006, allegedly ordered or enabled by then-supervisory-board chairman Klaus Zumwinkel and then-CEO Kai-Uwe Ricke.
Investigators were examining whether the monitoring was intended to identify sources who had leaked confidential information about planned layoffs and acquisitions. Employee representatives were reportedly targeted because German law requires large publicly listed companies to reserve half of certain supervisory-board seats for employees. CEO René Obermann cooperated with prosecutors, permitted searches of company offices, and appointed former federal judge Gerhard Schäfer to help manage the response. The case prompted comparisons in Germany to the 1962 Spiegel affair and earned Deutsche Telekom a 2008 Big Brother Award for Workplace and Communications, making it a prominent corporate privacy and governance scandal even though the supplied source does not establish final criminal convictions.