Microsoft Cuts Access
In a landmark move, Microsoft has suspended parts of its cloud and artificial intelligence services for a unit of the Israeli military, after an internal review found evidence that the military used Microsoft’s Azure platform to intercept, store, and analyze millions of phone calls from Palestinians in Gaza and the West Bank. Business & Human Rights Resource Centre+4Reuters+4The Verge+4
What sparked the decision
The change came in the wake of a joint investigation by The Guardian, +972 Magazine, and Local Call, revealing that Israel’s intelligence arm—believed to be Unit 8200—had leveraged Microsoft Azure to collect mass surveillance data, including phone conversations from Palestinian civilians.
Microsoft’s internal review confirmed that parts of those media reports aligned with internal usage data—particularly regarding Azure storage consumption in the Netherlands and use of AI-based services.
In a message to employees, Microsoft President Brad Smith affirmed the company’s stance: “We do not provide technology to facilitate mass surveillance of civilians,” and acknowledged that this was among the company’s long-standing service terms. The Guardian+3The Official Microsoft Blog+3Reuters+3
What is being blocked
Microsoft has disabled a subset of services tied to a specific Ministry of Defense (IMOD) subscription, primarily affecting cloud storage and AI tools used for data analysis and processing.
However, the company is not cutting all ties. Essential services such as cybersecurity support and other non-cloud functions will continue.
Microsoft framed the move not as a blanket boycotting of Israeli government contracts, but as a targeted action against misuse of specific tools. The Official Microsoft Blog+3Financial Times+3Reuters+3
Why this matters
This is the first known instance where a major tech company has revoked military access to its cloud and AI services on the grounds that they were abused in civilian surveillance.
Human rights groups and internal critics have called this a precedent-setting moment. The decision signals that major tech providers may be held accountable for how their platforms are used, especially in conflict zones.
Still, Microsoft’s critics note that most of its contracts with the Israeli military remain intact, so the move is only partial. Business & Human Rights Resource Centre+3The Verge+3Reuters+3
Reaction and next steps
Israel’s Defense Ministry has had no immediate comment publicly. Reuters+1
Meanwhile, activist and tech groups—including “No Azure for Apartheid,” formed by Microsoft employees—praised the decision as a hard-fought victory, though they warned it needs to go further.
Inside Microsoft, tensions have been high for months. Several employees were previously fired or disciplined over protests against the company’s ties to Israel’s military operations in Gaza.
The company says its review is ongoing; it may identify other abuses or cases warranting further action. The Guardian+3The Official Microsoft Blog+3Reuters+3
