Microsoft commissions review into Israeli military use of Azure after surveillance allegations
The company hires outside counsel to check claims its cloud services hosted Palestinian phone records.
Microsoft said Friday it has commissioned an independent legal review into claims that its cloud services have been used by the Israeli military to conduct mass surveillance of Palestinians, escalating scrutiny of one of the world’s most influential technology companies as the Gaza conflict continues to draw in Silicon Valley.
The move follows an August 6 investigation by The Guardian, which reported that Israel’s Defense Forces (IDF) were using Microsoft’s Azure platform to store data from phone calls obtained through broad surveillance operations in Gaza and the West Bank. Such use, if confirmed, would violate Microsoft’s own terms of service, which prohibit weaponization of its technology and the storage of data obtained through mass surveillance.
Microsoft has retained the law firm Covington & Burling, alongside an unnamed technical consultancy, to examine the allegations. The company said it would make the factual findings public.
The new inquiry expands on a prior internal review in which Microsoft said it found “no evidence” that its Azure or AI tools were being used by the IDF to harm civilians or conduct prohibited surveillance. That review, which included interviews with employees and the assessment of company documents, concluded in recent months without finding violations.
Still, the company acknowledged that The Guardian’s reporting presented “additional and precise allegations that merit a full and urgent review.”
Microsoft confirmed it maintains a commercial relationship with Israel’s Ministry of Defense, providing Azure cloud services, AI tools such as language translation, software, and cybersecurity support. Like other government clients, Israel is bound by Microsoft’s Acceptable Use Policy and AI Code of Conduct, which forbid the use of the company’s technology to inflict harm or to engage in unlawful activities.
The company also said it provided “limited emergency support” to the Israeli government in the weeks after Hamas’s October 7, 2023 attacks, helping in hostage rescue operations under what Microsoft described as “significant oversight” and subject to approvals and denials of requests.
“Based on everything we currently know, we believe Microsoft has abided by \[our Human Rights Commitments\] in Israel and Gaza,” the company said in its statement.
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Microsoft stressed that militaries typically rely on proprietary software or tools developed by defense contractors for surveillance or targeting operations, not commercial platforms like Azure. The company added that it has no visibility into how customers use its software on private servers or on government-operated clouds supported by other providers.
The review comes after months of growing pressure from Microsoft employees and human rights groups concerned that its cloud and AI technologies could be implicated in military operations in Gaza. Employee activism has placed many technology companies under scrutiny, as critics press firms to disclose the scope of their contracts with the Israeli government and military.
Microsoft acknowledged “concerns from our employees and the public” but reiterated that, to date, its reviews had not uncovered evidence of misuse.
