(Bloomberg) —
Microsoft Corp. has taken action to limit the Israeli military’s access to certain software functionalities following an internal inquiry into reports that its technology was used in the surveillance of civilians. The move comes after scrutiny and protests from employees and activists concerned about the company’s relationship wiht Israel‘s military amid the conflict in Gaza.
The investigation was prompted by reporting from The Guardian newspaper, which alleged that data related to mass surveillance was being stored on Microsoft cloud servers. These reports detailed claims that Israel’s military intercepted millions of Palestinian mobile phone calls, stored them on Microsoft servers, and utilized the data in identifying bombing targets in Gaza.
“The Israel Ministry of Defense has been informed 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,” Microsoft President Brad Smith said Thursday in a blog post. Smith reiterated that the company’s policies prohibit customers from employing its products for mass surveillance of civilians.
Microsoft employees and external activists have demonstrated against the company’s work with the Israeli military for nearly a year, including a protest in August that resulted in several arrests after demonstrators occupied Smith’s office.
A complete review of Microsoft’s collaboration with israel remains underway, according to Smith. He clarified, however, that this action “does not impact the important work that Microsoft continues to do to protect the cybersecurity of Israel and other countries in the Middle East.”
©2025 Bloomberg L.P.
