Microsoft Completes Inquiry into Israeli Military Use of Azure, Terminates Contract, Tightens Security and Human-Rights Oversight

Microsoft announced on Thursday that it had completed an internal inquiry into the use of its Azure cloud platform by Israel’s Unit 8200 and would adopt new measures to strengthen oversight of national-security contracts and foreign security clearances.

The company said it would change how it vets national security-related business before contracts are signed and would examine how it manages security clearances in certain countries to ensure employees understand clearance requirements. Microsoft ordered the inquiry last year after a Guardian investigation with +972 Magazine and Local Call found that Unit 8200 had used Azure to collect, play back and analyse millions of Palestinian cellular phone calls each day.

Shortly after the inquiry began, Microsoft terminated the Israeli military’s access to the cloud and AI services supporting the surveillance project once initial findings showed Unit 8200 had violated the company’s terms of service. In its summary, Microsoft stated that its factual findings remain the same and that it would adopt recommendations to improve the effectiveness of its human rights governance.

The inquiry examined how some Tel Aviv-based employees felt conflicting loyalties between obligations to Microsoft and support for the Israeli military after the Hamas-led attacks on 7 October.

Last month Microsoft said the head of its Israeli business would leave the company; local media reports linked the departure to a controversy over violations of the company’s code of ethics, and several other managers were also said to have exited. Microsoft’s five-page summary does not mention the staff departures.