Microsoft Terminates Services to Israeli Military Unit Over Palestinian Surveillance

The decision follows a damning Aug. 6 report by The Guardian exposing the so-called Israeli Ministry of Defense (IMOD) unit’s use of Microsoft’s Azure cloud platform to store data from millions of Palestinian phone calls.

“I want to let you know that Microsoft has ceased and disabled a set of services to a unit within the Israel Ministry of Defense (IMOD),” said Brad Smith, Microsoft’s vice chair and president, in a statement.

The Guardian’s report revealed the Israeli military’s exploitation of Azure for mass surveillance of civilians, a practice Microsoft condemned as a violation of its principles.

Smith emphasized that privacy is a fundamental right and critical to maintaining customer trust.

“First, we do not provide technology to facilitate mass surveillance of civilians. We have applied this principle in every country around the world, and we have insisted on it repeatedly for more than two decades,” he said.

Microsoft’s internal review, triggered by the report, confirmed the IMOD’s misuse of Azure storage in the Netherlands and AI services for surveillance purposes.

The company stressed it never accessed IMOD’s customer content, conducting its investigation using internal financial and communication records.

“We therefore have informed IMOD of Microsoft’s decision to cease and disable specified IMOD subscriptions and their services, including their use of specific cloud storage and AI services and technologies,” Smith’s statement read.

Microsoft has engaged with the IMOD to ensure its services are not further misused for civilian surveillance.

Smith clarified that the decision does not affect Microsoft’s broader cybersecurity work in Israel or the Middle East, including efforts under the Abraham Accords, which normalize relations between Israel and several Arab nations.

The company acknowledged The Guardian’s role in exposing the issue and said its review is ongoing, with further details to be released soon.