Everyone is tapping everyone else to the extent they can get away with it - especially allies, because they can get away with it more. You don't think the NSA monitors every single bit that flows in and out of the USA?
Periodically, someone gets caught red-handed, a fuss is made, some diplomats get thrown out and replaced with other ones, and then everyone continues doing it.
Periodically, someone gets caught red-handed, a fuss is made, some diplomats get thrown out and replaced with other ones, and then everyone continues doing it.