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Microsoft Halts Services to Israeli Defense Ministry Over Surveillance Allegations

September 25, 2025
in World
Reading Time: 3 min

In a significant move, Microsoft confirmed on Thursday that it has cut off some services to Israel’s Defense Ministry. This decision follows an internal company review that concluded Israel was in violation of the terms of service for Microsoft’s products. The core issue revolves around the use of cloud storage services for extensive surveillance data.

The internal investigation uncovered evidence that Israel was utilizing Microsoft’s cloud storage to store sensitive surveillance data pertaining to Palestinians. This included detailed records of millions of phone calls made daily between Palestinian individuals, information previously brought to light by reports from The Guardian and the Israeli news site +972 earlier this year.

Brad Smith, President of Microsoft, emphasized the company’s commitment to privacy. In a public statement, he highlighted that the company shares a fundamental interest in privacy protection, underscoring the business value derived from customers’ unwavering trust in their services. He firmly stated that Microsoft would not provide technology that facilitates the mass surveillance of civilians.

The Israeli Ministry of Defense has not yet responded to requests for comment regarding Microsoft’s announcement.

This decision by Microsoft comes amid growing internal pressure from its own employees. In the preceding month, a group of current and former Microsoft staff members reportedly staged protests within Mr. Smith’s office, urging the company to cease its software provisions to Israel.

While Microsoft did not specify the exact services being discontinued, the company’s blog post affirmed its continued support for Israel’s cybersecurity initiatives. An anonymous official from Israel’s Defense Ministry indicated that the suspended services primarily involve access to Microsoft’s cloud storage. Interestingly, this official noted that Israel had already begun migrating its cloud services to other platforms, including Amazon, prior to Microsoft’s review.

It’s important to note that Israel’s Defense Ministry and its military intelligence unit 8200 utilize services from various leading tech companies, including Google, Amazon, and Microsoft. Previously, reports indicated that Israel’s facial recognition program in Gaza relied partly on free services from Google. Furthermore, Google’s substantial $1.2 billion cloud computing contract with the Israeli government and military has sparked considerable concern about its potential impact on the company’s public image and ethical standing.

A scene of wreckage in Gaza.
Microsoft’s review uncovered evidence that Israel was using its cloud storage services to hold surveillance data on Palestinians. (Photo credit: Saher Alghorra for The New York Times)
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