The French daily "Le Monde" reports that the country's foreign intelligence service intercepts all electronic communications in France.
The paper says data from communications were stored at the headquarters of the DGSE intelligence service.
"Le Monde"says data collected from telephone conversations and Internet communications are then stored "for years" on a supercomputer where other security services can access them.
Intelligence services analyze the "metadata" -- the records revealing who is speaking to whom, when, and where, but not the actual contents of e-mails and other communications.
France has been critical of the revelations that the U.S. National Security Agency (NSA) has been storing huge amounts of data on Americans and foreigners.
President Francois Hollande had on July 3 threatened to block EU-U.S. trade negotiations after media reports the NSA was spying on EU offices and embassies.
The British daily "The Guardian" cited leaks by fugitive U.S. intelligence analyst Edward Snowden indicating Washington spied on 38 embassies and representative offices of its European and non-European allies, including France, Italy, Greece, Japan, and Turkey.
Snowden, who leaked the details of classified U.S. electronic surveillance programs, faces espionage charges in the United States.
He was last seen disembarking from a plane at Moscow’s Sheremetyevo Airport on June 23, and is believed to still be in the transit area there awaiting definitive word on any of around 20 asylum requests.
Moscow has indicated it would not send Snowden back to the United States.
Based on reporting by AFP and BBC