Microsoft cuts cloud services to Israeli military unit over Palestinian surveillance

Microsoft has cut off the Israel Ministry of Defence’s access to parts of its technology and services following an internal investigation that found the organisation appeared to be using Microsoft’s tools to store surveillance data from phone calls made by Palestinians.

The company announced on Thursday that it had decided to “cease and disable” certain subscriptions held by the Israeli military. The move affects access to Azure cloud storage and specific AI services.

“We do not provide technology to facilitate mass surveillance of civilians,” Microsoft vice chair and president Brad Smith wrote in a blog post. “We have applied this principle in every country around the world, and we have insisted on it repeatedly for more than two decades. This is why we explained publicly on August 15 that Microsoft’s standard terms of service prohibit the use of our technology for mass surveillance of civilians.”

According to The Guardian, Microsoft informed Israel of the decision last week.

The review began in August, following a report by The Guardian that revealed Unit 8200, Israel’s elite military intelligence unit, had allegedly been using Azure cloud services to store phone call data collected through surveillance of Palestinians in Gaza and the West Bank.

In his post, Smith credited the reporting for triggering the investigation:

“Without this reporting, we would not have known to investigate, because customer privacy rights prevent us from accessing customer content.”

Smith emphasised that protecting privacy also carries business value by reinforcing customer trust in Microsoft’s services.

The review is still ongoing, though the company declined to comment further to TechCrunch about what remains under examination.

Microsoft has faced mounting criticism over its relationship with Israel in the past year. Protests erupted during its 50th anniversary celebration in April, and in August, employees staged a sit-in at Smith’s office, prompting a lockdown. The company has since terminated multiple employees over activism tied to its contracts with Israel.