BERLIN—Germany has curtailed its intelligence sharing with the U.S., amid accusations that it helped the U.S. spy on European allies, German officials said.

Germany’s foreign intelligence service, known as the BND, will no longer provide the U.S. with Internet surveillance data from a Bavarian satellite eavesdropping post that has been at the center of a recent espionage controversy, a parliamentary official briefed on the matter said. A second German official, though, stressed the decision only affected the outpost in…