The revelation by lawyer Jonathan Laidlaw came at London's High Court, where lawyers for David Miranda, the partner of Guardian journalist Glenn Greenwald unsuccessfully sued to stop police from combing through digital material seized from him Sunday at Heathrow Airport.
It was the British government's first mention of a criminal investigation linked to the seized material, which included a laptop, cellphone, DVDs and memory sticks.
Miranda, a 28-year-old Brazilian student, was detained for nearly nine hours as he flew through the London airport after meeting in Germany with a journalist working with Greenwald.
Laidlaw said British police had already begun scanning through Miranda's tens of thousands of pages of documents, which he described as "highly sensitive."
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"The disclosure of (the material) would be gravely injurious to public safety and thus the police have now initiated a criminal investigation," Laidlaw said. "There is an absolutely compelling reason to permit this investigation to continue."
It was not immediately clear what link a British investigation would have to American efforts to prosecute Snowden, who has won temporary asylum in Russia and is still being sought by Barack Obama's government on charges of espionage.