Microsoft has stopped providing certain services to a unit within the Israeli Ministry of Defence following reports that the military was using the company’s cloud technology for mass surveillance of Palestinians.
The decision was confirmed by Microsoft President Brad Smith, who said the company had “ceased and disabled a set of services” for the Israeli military unit.
The move follows an investigation by The Guardian and Israel’s +972 Magazine, which reported that Unit 8200, Israel’s military intelligence branch, had used Microsoft Azure to store millions of phone calls from Palestinians in Gaza and the occupied West Bank.
Microsoft said it began reviewing the allegations on 15 August, examining business records, financial statements, and internal documents, but not the content of any stored material. Smith stressed that Microsoft does not provide technology for mass surveillance of civilians, a standard the company applies globally.
The company said its review found evidence supporting some elements of the reports, including Israeli use of Azure storage in the Netherlands and Microsoft AI services. As a result, Microsoft informed Israel it would stop specific subscriptions and related cloud storage and AI services.
An Israeli security official stated that the decision would not affect the operational capabilities of the Israel Defence Forces.
Microsoft has said its review is ongoing.
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