The World Wide Web foundation commended the country for it's "top scoring performance on measures of freedom and openness," in a report released in London on Friday.
Other Nordic countries also made the top ten, with Denmark making 6th place, Finland 7th place and Iceland 8th place.
The report warned, however that Sweden's close cooperation with UK and the USA intelligence agencies could put its leadership position under threat, due to "excessive state surveillance."
"A growing tide of surveillance and censorship now threatens the future of democracy," Berners-Lee said at the launch of Web Index 2013 ranking. "Bold steps are needed now to protect our fundamental rights to privacy and freedom of opinion and association online.”