In this particular instance though, according to the article, some negotiation was done between the two governments to reach a no-spy agreement.
As no agreement could be reached, an American company cannot offer the service required by the German government. Thus is it not reasonable for the contract to be cancelled?
This is not a shot at an innocent third party, this is the third party being constrained by American laws to the extent that it cannot offer a required service. Sure, it is unfortunate that a third party is adversely affected by this, but it cannot be portrayed as a deliberate act against them by the German government.
As no agreement could be reached, an American company cannot offer the service required by the German government. Thus is it not reasonable for the contract to be cancelled?
This is not a shot at an innocent third party, this is the third party being constrained by American laws to the extent that it cannot offer a required service. Sure, it is unfortunate that a third party is adversely affected by this, but it cannot be portrayed as a deliberate act against them by the German government.