Though, as Google and Yahoo later found out, the NSA was directly tapping cables between their data centers [1].
[1] http://www.wired.com/2013/10/nsa-hacked-yahoo-google-cables/
1) True.
2) Consistent with statements made by Google.
3) Quickly mitigated by Google when it began encrypting traffic between data centers.
Though, as Google and Yahoo later found out, the NSA was directly tapping cables between their data centers [1].
[1] http://www.wired.com/2013/10/nsa-hacked-yahoo-google-cables/