Microsoft finalizes Israel surveillance probe, strengthens human rights controls

Microsoft Tightens Human Rights Controls After Israel Military Cloud Probe

Microsoft announced on Thursday the completion of its inquiry into the Israeli military’s use of Azure cloud services for mass surveillance of Palestinians, unveiling a series of measures to strengthen human rights oversight for engagements with national security agencies worldwide.

Inquiry Findings and New Measures

The company said its “factual findings remain the same” as the preliminary conclusions that led it to cut off the Israeli Ministry of Defense’s access to cloud and AI services in September 2025. Microsoft will now implement stronger pre-contract review processes for national security-related engagements, changes to how it manages employees with security clearances issued by foreign governments, and periodic inspections to verify compliance when political conditions shift or sensitive projects change.theguardian

The inquiry, led by attorneys from the law firm Covington & Burling, was triggered by an August 2025 investigation by the Guardian, +972 Magazine, and Local Call, which revealed that the Israeli military’s signals intelligence agency, Unit 8200, had used Microsoft’s Azure cloud platform to collect, store, and analyze millions of Palestinian phone calls daily in Gaza and the West Bank.bbc

The Path to This Point

Microsoft President Brad Smith disclosed in September 2025 that preliminary findings showed the Israeli military had breached Microsoft’s terms of service, prompting the company to “cease and disable” specified Ministry of Defense subscriptions, including cloud storage and AI services. The action did not affect Microsoft’s cybersecurity services to Israel or other Middle Eastern countries.business-standard

The Guardian’s reporting indicated that Unit 8200 had approached Microsoft after concluding its own servers lacked sufficient storage and computing power to handle phone calls of the entire Palestinian population. Leaked files suggested approximately 11,500 terabytes of data — equivalent to roughly 200 million hours of audio — was stored on servers in the Netherlands, with additional data in Ireland.jpost

Broader Fallout

The inquiry also examined potential conflicts of loyalty among Microsoft employees based in Tel Aviv, who were reportedly divided between professional responsibilities and support for the Israel Defense Forces after the October 7, 2023 Hamas attacks. Microsoft has stated that senior executives, including CEO Satya Nadella, were not aware that Unit 8200 was using Azure to store intercepted Palestinian communications.observador

Amnesty International welcomed the earlier decision to restrict access but urged Microsoft to investigate all its contracts and transfers of surveillance technology to Israel. Former Microsoft employee Hossam Nasr, dismissed for protesting the company’s role, called the September cutoff an “unprecedented victory” but noted that “the vast majority of Microsoft’s contract with the Israeli military remains unchanged”.amnestyusa