SAEDNEWS: Microsoft announced on Thursday it has severed ties with an Israeli military unit implicated in widespread surveillance of Palestinians in Gaza and the West Bank.
Microsoft has taken decisive action against a unit within the Israeli Ministry of Defense (IMOD) after a damning report by The Guardian on August 6 revealed the unit’s use of Microsoft’s Azure cloud platform to store data from millions of Palestinian phone calls.
Brad Smith, Microsoft’s vice chair and president, confirmed the move: “Microsoft has ceased and disabled a set of services to a unit within the Israel Ministry of Defense (IMOD).”
The report exposed how the Israeli military allegedly used Azure for mass surveillance of civilians, a practice Microsoft condemned as contrary to its core principles. Smith stressed that privacy is a fundamental right and vital to maintaining trust:
“We do not provide technology to facilitate mass surveillance of civilians. This principle has guided our actions worldwide for over two decades.”
Microsoft’s internal review, prompted by the report, confirmed misuse of Azure storage in the Netherlands and AI services for surveillance purposes. Importantly, the company emphasized that it never accessed IMOD’s content, relying instead on internal financial and communication records for its investigation.
“We have informed IMOD of Microsoft’s decision to cease and disable specified subscriptions and services, including cloud storage and AI technologies,” Smith added.
Microsoft has also worked with IMOD to prevent further misuse of its services for civilian surveillance. Smith clarified that the decision does not affect Microsoft’s broader cybersecurity work in Israel or the Middle East, including initiatives under the Abraham Accords.
The company acknowledged The Guardian’s reporting and stated that its review is ongoing, with further details expected soon.
