No criminal charges will be laid against any person involved in the government surveillance of internet entrepreneur Kim Dotcom, carried out by the Government Communications Security Bureau.
This is in response to a complaint laid by Green Party co-leader Russel Norman in October last year.
The police say only one communication relating to Mr Dotcom was intercepted that breached the Crimes Act.
They say that while GCSB staff did technically break the law, they did not have the necessary intent, to reach a threshold where a prosecution should be taken.
Detective Superintendent Peter Read says the investigation was thorough and included interviews with staff from both the GCSB and the Organised Financial Crime Agency.
"It was established that one communication relating to Mr Dotcom had been intercepted in breach of the provisions of Section 216b. While GCSB staff did commit the prohibited act in relation to Section 216b of the Crimes Act, they did not have the necessary intent to satisfy the elements of the offence and be considered criminally liable."
Mr Read says the police will now consider a number of recommendations made by the investigation team to improve processes between the police and the GCSB.
Greens hoped for more
Dr Norman is not happy with the decision, saying he had hoped for more from the police.
He says Mr Dotcom's is the most prominent case but the police have not investigated the 85 New Zealanders who were illegally spied on.
"The CGCSB has acted illegally; intercepted private communications they weren't allowed to and none of them are to be prosecuted for it.
"You've had state agencies that are meant to be under a rule of law regime; they're meant to follow the law. They broke the law and yet none of them are accountable."