Microsoft has restricted the Israel Ministry of Defense from using portions of its technology and services following concerns over surveillance practices. The company announced on Thursday that it had disabled certain Azure cloud and AI subscriptions linked to the Israeli military after an internal review raised red flags.
“We do not provide technology to facilitate mass surveillance of civilians,” said Brad Smith, Microsoft vice chair and president, in a blog post. “This principle has guided us for over two decades, and our terms of service prohibit such use globally.”
The move comes after a The Guardian investigation revealed that Unit 8200, Israel’s elite military intelligence unit, had been using Microsoft’s Azure cloud to store surveillance data from intercepted phone calls made by Palestinians in Gaza and the West Bank. Microsoft confirmed it informed Israel of the decision last week.
Smith credited The Guardian’s reporting for triggering the company’s probe, noting that Microsoft cannot access customer data directly due to privacy protections. “Employees and customers alike depend on our ability to protect privacy. Trust is at the core of our business,” he emphasized.
The company said its review is ongoing but declined to share details on which services remain under scrutiny.
Related: Microsoft Avoids EU Antitrust Fines by Unbundling Teams from Office 365
Microsoft has faced mounting internal and external pressure over its relationship with Israel. Protests erupted at its 50th anniversary celebration in April, while a sit-in staged at Smith’s office in August forced a temporary lockdown. Several employees have since been fired for activism tied to the company’s defense contracts with Israel.
The decision marks a significant step in Microsoft’s attempt to draw a firm line against the use of its technology for mass surveillance of civilians while navigating heightened scrutiny of its global partnerships.
