Microsoft's Israeli subsidiary head is stepping down following an inquiry into business dealings with the Israeli military, after a Guardian investigation revealed the military used Microsoft technology for mass surveillance of Palestinian phone calls.
Background of the Inquiry
Microsoft ordered the inquiry last year in response to a joint investigation by the Guardian, +972 Magazine, and Local Call. It found that Unit 8200, Israel's elite spy agency, used Microsoft's Azure cloud platform to store intercepted calls from Gaza and the West Bank. The inquiry, conducted by US law firm Covington & Burling, recently concluded, prompting the announcement that Alon Haimovich would leave Microsoft Israel.
Haimovich's Role
Documents suggest Haimovich fostered ties between Microsoft Israel and Unit 8200 after a 2021 meeting between Microsoft CEO Satya Nadella and the unit's commander. He oversaw building a segregated Azure area for sensitive intelligence material, where Unit 8200 stored vast archives of Palestinian communications. Haimovich did not comment but stated in an email that he positioned Israel as one of Microsoft's fastest-growing markets.
Violations and Consequences
Microsoft initially found Unit 8200 violated its terms of service by using Azure for mass surveillance, terminating access to cloud services and AI products. The surveillance system allowed intelligence officers to collect and analyze millions of Palestinian calls daily. Senior executives, including Nadella, claimed unawareness of the misuse. Microsoft's president Brad Smith stated the company does not provide technology to facilitate mass surveillance of civilians.
The inquiry focused on whether Israel-based employees were transparent with headquarters. Globes reported several other managers also left their positions.
