Microsoft Investigates Allegations of Israeli Military Using Its Tech for Mass Surveillance

Microsoft has launched an "urgent" external investigation into allegations that its technology was used by Israel's military surveillance agency to facilitate mass surveillance of Palestinians. The company had previously found that Unit 8200, Israel's intelligence agency, had stored vast amounts of ordinary Palestinian mobile phone data on Microsoft's Azure cloud. This marks Microsoft's second independent review into how its technology is being used by the Israeli military. Employee protests have accused the company of "complicity in genocide and apartheid" and called on it to cut all ties to the Israeli military.

Microsoft has launched an "urgent" external investigation into allegations that its technology was used by Israel's military surveillance agency to facilitate mass surveillance of Palestinians. The company had previously found that Unit 8200, Israel's intelligence agency, had stored vast amounts of ordinary Palestinian mobile phone data on Microsoft's Azure cloud. This marks Microsoft's second independent review into how its technology is being used by the Israeli military. Employee protests have accused the company of "complicity in genocide and apartheid" and called on it to cut all ties to the Israeli military.

The investigation, led by lawyers at the US firm Covington & Burling, will examine whether the use of Azure by Unit 8200 complies with Microsoft's terms of service and human rights commitments. Microsoft has stated that using Azure for the storage of data files of phone calls obtained through broad or mass surveillance of civilians in Gaza and the West Bank would be prohibited by its terms of service.

The allegations come amid rising internal pressure and employee dissent. A campaign group inside the company, called No Azure for Apartheid, has accused Microsoft of "complicity in genocide and apartheid" and is pushing the company to sever all ties with Israel's military. The Guardian reported that Microsoft executives in the US were alarmed by the possibility that Israel-based staff might have withheld information about how Unit 8200 used the Azure platform.

The investigation follows a joint report by The Guardian, +972 Magazine, and Hebrew-language outlet Local Call, which revealed that Unit 8200 had set up a custom, segregated area within Azure to handle intercepted Palestinian phone calls. The report claimed that the spy unit could record "millions of calls per hour" across the Palestinian territories.

Microsoft's previous investigation in May found no evidence that the Israeli military had violated its terms of service or used Azure to target or harm people in Gaza. However, the recent allegations have prompted the company to launch a new inquiry.

The investigation comes against the backdrop of Israel's offensive in Gaza, which has killed more than 61,000 Palestinians, according to figures from the Hamas-run health ministry. The scale of the violence has sparked international condemnation and domestic dissent within Israel.

Microsoft has stated that it will "share with the public the factual findings that result from" the review once it is completed. The company's response to the allegations is being closely watched by investors and financial professionals, who are concerned about the potential reputational and legal risks associated with the company's ties to the Israeli military.

References:
[1] https://www.theguardian.com/world/2025/aug/15/microsoft-launches-inquiry-claims-israel-used-tech-mass-surveillance-palestinians
[2] https://www.indiatoday.in/technology/features/story/microsoft-launches-urgent-probe-into-claims-azure-is-powering-israeli-spy-ops-in-gaza-full-story-in-5-points-2772920-2025-08-18