Microsoft Curbs Services to Israel Ministry of Defense Amid Surveillance Concerns

Microsoft Corp. announced Thursday it has restricted the Israel Ministry of Defense's access to select technological services following an internal investigation. The decision, communicated last week, stems from findings that indicate the ministry appeared to be utilizing Microsoft's technology for storing surveillance data related to phone calls made by Palestinians. The affected services include subscriptions to Azure cloud storage and specific artificial intelligence (AI) offerings, which Microsoft has chosen to "cease and disable." Brad Smith, Microsoft Vice Chair and President, stated in a blog post that the company "does not provide technology to facilitate mass surveillance of civilians," a principle he noted Microsoft has upheld globally for over two decades. He reiterated that Microsoft's standard terms of service explicitly prohibit the use of its technology for mass civilian surveillance. This action follows a comprehensive review initiated by Microsoft in August. The review was prompted by an August report from *The Guardian*, which alleged that Unit 8200, an Israeli military intelligence unit, was employing Azure cloud storage to house data obtained through the surveillance of Palestinian phone calls in Gaza and the West Bank. Smith publicly acknowledged *The Guardian*'s initial reporting, crediting it as essential for uncovering the matter, given that customer privacy rights prevent Microsoft from directly accessing client content. The technology firm has faced escalating scrutiny and activism from both employees and external groups concerning its engagements with Israel over the past year. This includes protests during the company's 50th-anniversary celebration in April and a sit-in at Smith's office in August, which resulted in a facility lockdown. Reports also indicate Microsoft has terminated the employment of multiple individuals in recent months due to their activism linked to the company's contracts with Israel. Microsoft stated its internal review remains underway but did not offer further specifics to TechCrunch regarding ongoing aspects of the investigation.