On September 26, Microsoft announced the termination of the Israeli intelligence’s Unit 8200 access to its Azure cloud and AI services after it was revealed the spy agency was using the platform to store and analyze millions of intercepted Palestinian phone calls, facilitating mass surveillance and digital authoritarianism in Gaza, according to The Guardian.
The decision, following an external review, cuts off a key capability from a system designed to collect “a million calls an hour” and store thousands of terabytes of audio data.
The recent Microsoft’s digital responsibility decision is the first known withdrawal of tech services from Israel’s military since the war began. The credit, however, doesn’t go to Microsoft – mainly due to complicity in the genocide and failure to act earlier – but the Guardian’s investigation.
Israel’s Unit 8200 stored and analyzed Palestinian phones calls through Microsoft’s platform. Once claimed a “neutral” technology service, Microsoft has now become an example of how Big Tech can no longer deny the complicity of its tools in the war and human rights’ breach.
Microsoft, and Digital Authoritarianism
Israel’s intelligence Unit 8200 is often compared to the US National Security Agency.
Throughout the brutal Israel war on Palestinians, the unit benefited from Azure’s vast computing power to build systems able of penetrating and replaying Palestinian call at high speed. Internally, this process was referred to as “A million calls an hour.”
According to sources, the operation processed up to 8,000 terabytes of intercepted conversations, stored in Microsoft data center. Intelligence officers reportedly used the data for surveillance in the West Banks.
“We do not provide technology to facilitate mass surveillance of civilians. We have applied this principle in every country around the world, and we have insisted on it repeatedly for more than two decades,” responded Brad Smith Microsoft’s vice-chair and president reflecting the code of ethics of Microsoft company.
After Microsoft acknowledged that using Azure for data would breach the company’s digital rights, it brought back an earlier internal investigation in May, when the tech company claimed “no evidence to data” of Azure being a tool to harm Gaza people.
“Based on our review, including both our internal assessments and external review, we have found no evidence that Microsoft’s Azure and AI technologies, or any of our other software, have been used to harm people or that IMOD has failed to comply with our terms of service or our AI Code of Conduct,” Microsoft stated.
However, concerns were raised about Israel-based staff that may have suspended information, questioning what is surveillance capitalism?
Digital Authoritarianism and the Future of Human Hights
The massive decision came after internal pressure from employees and investors. With Azure-parent highlighting its disassociation from the use of technology for oppression, or to facilitate mass surveillance of civilians.
Not forgetting that early 2025, US headquarters and European data centers had to deal with protests. Urging Microsoft to cut all digital-military ties.
In July, Palestinians raised their voices against Microsoft’s attempts to cut off their communication after suspending long-standing personal accounts, including Skype services used to check on families in Gaza strip.
A clear sign of harm towards civilians, yet Microsoft camouflaged behind the “violation of terms” concepts, neglecting surveillance tech.
“I’ve had this Hotmail for 15 years. They banned me for no reason, saying I have violated their terms – what terms? Tell me. I’ve filled out about 50 forms and called them many times,” Salah Elsadi, a Palestinian living in the US told BBC.
Big Tech’s global reach does not crash with conflicts. It actually facilitates it.
Israel’s Unit 8200 has stored the data in Microsoft’s Dutch data center, until rapidly moving it in early August, reportedly to Amazon Web Services (AWS). Despite the latest termination, Microsoft still maintains its wider IDF contract with the Israeli military.
For years, Microsoft stood behind contracts made to support military initiatives as neutral business collaborations, denying the tech ethics during war.
But now, with suspending Israel’s surveillance program, Microsoft has finally awakened from its long time denial and acknowledged that neutrality is no longer possible, especially with military systems like Israel’s.
Microsoft’s decision may signal a broader shift where technology companies are being pressured into decisions served by governments. Servers, algorithms, and AI tools are now considered factors in deciding the fate of lives and survival of entire populations, emphasizing facial recognition ethics and privacy issues and technology.
The case of Unit 8200 summarizes digital authoritarianism and the future of human rights that was once hailed as tools for democratization, giving power for states and companies to control and influence populations. Corporate data practices manipulate public opinion while social media and AI allow unprecedent shadowing over what is mass surveillance by Microsoft and Google?
Tech companies should act responsibly and work on global oversight to ensure digital tools protect rather than undermine human rights, considering facial recognition technology privacy concerns.
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