Microsoft has taken the unusual step of restricting access to some of its technology for Israel’s Ministry of Defense after an internal review raised serious concerns about how its services were being used. According to the company, the ministry had been leveraging Microsoft’s tools—specifically Azure cloud storage and certain AI services—to store large amounts of surveillance data collected from phone calls made by Palestinians.

In a blog post published Thursday, Microsoft president and vice chair Brad Smith explained that the company had “ceased and disabled” a number of subscriptions linked to Israel’s defense activities. He emphasized that Microsoft has long prohibited the use of its technologies for the mass surveillance of civilians, a stance the company has consistently upheld for more than two decades. “We do not provide technology to facilitate mass surveillance of civilians,” Smith wrote, reiterating the company’s global policy.

The move followed a report by The Guardian that revealed Israel’s Unit 8200—its elite military intelligence division—was storing intercepted phone call data on Microsoft’s cloud platform. This revelation prompted the tech giant to launch an internal investigation in August. Smith even acknowledged The Guardian’s reporting, noting that because of customer privacy protections, Microsoft would not have had visibility into the specific use of its services without the journalistic exposé.

While the review is still ongoing, Microsoft confirmed it informed Israeli officials of the suspension last week. However, the company declined to share further details on which aspects remain under scrutiny.

The decision comes amid heightened tensions within Microsoft itself. The company has faced backlash from employees and activists over its ties to Israel, with protests erupting at its 50th anniversary event earlier this year. In August, several employees staged a sit-in at Smith’s office, leading to a temporary lockdown. Microsoft has since dismissed multiple employees over activism tied to its Israel-related contracts.

This latest move highlights Microsoft’s attempt to balance business relationships with ethical responsibilities, particularly in sensitive geopolitical contexts.