The inquiry, initiated by Microsoft’s US headquarters, followed a joint investigation by The Guardian, +972 Magazine and Local Call that reported Israeli intelligence Unit 8200 used Microsoft’s Azure cloud platform to collect, store and analyze intercepted phone conversations involving Palestinians in Gaza and the West Bank.

According to the reports, Microsoft’s internal review concluded that the Israeli military had violated the company’s terms of service through the use of Azure technology for surveillance operations.

The investigation also found that employees within Microsoft’s Israeli subsidiary had not fully disclosed the nature of the military’s activities to senior executives in the United States.

Haimovich played a central role in developing ties between Microsoft and Israeli defense authorities, according to The Guardian. The newspaper reported that he attended a 2021 meeting between Microsoft Chief Executive Satya Nadella and the then-head of Unit 8200, one of Israel’s most prominent military intelligence divisions.

The report said Haimovich later supervised the relationship that enabled Unit 8200 to establish a large operational network within the Azure system, allowing intelligence personnel to process and review millions of intercepted calls.

Israeli financial newspaper Globes reported that Haimovich was questioned by Microsoft’s investigative team, which included lawyers from US law firm Covington & Burling, during a visit to the company’s offices near Tel Aviv.

Following the investigation, Unit 8200 reportedly lost access to Azure services and related artificial intelligence tools provided through the platform.
Haimovich did not publicly comment on the investigation.

However, in an internal email cited by The Guardian announcing his departure, he said he had helped transform Israel into “one of Microsoft’s fastest-growing markets worldwide.”

Microsoft had previously indicated that senior leadership was unaware that Azure infrastructure was being used to store intercepted Palestinian communications.

Last year, Microsoft Vice Chair and President Brad Smith said the company did not supply technology intended to facilitate “mass surveillance of civilians.”

The revelations add to increasing scrutiny faced by major technology companies over the use of cloud computing and artificial intelligence tools by governments and military agencies in conflict zones.

Musk, a co-founder of OpenAI, is suing the company, Chief Executive Sam Altman, President Greg Brockman and major investor Microsoft, alleging they abandoned OpenAI’s original mission of developing artificial intelligence for the benefit of humanity and instead turned it into a commercial enterprise focused on profit.

“If we make it okay to loot a charity, the entire foundation of charitable giving in America will be destroyed,” Musk told the court on the first day of trial. “That’s my concern.”Musk is seeking $150 billion in damages from OpenAI and Microsoft, with the proceeds directed to OpenAI’s charitable arm. He is also asking the court to require OpenAI to return to nonprofit control and to remove Altman and Brockman from leadership roles, while seeking Altman’s removal from the board.

The lawsuit includes claims of breach of charitable trust and unjust enrichment and could have significant implications for OpenAI’s governance as the company explores a potential initial public offering that Reuters has previously reported could value it near $1 trillion.

OpenAI lawyer Bill Savitt told jurors during opening arguments that Musk had originally supported the idea of turning OpenAI into a for-profit structure and only sued after failing to gain control of the company and later launching his own rival artificial intelligence venture, xAI.Savitt said Musk wanted “the keys to the kingdom” and pursued litigation only after OpenAI rejected his ambitions to lead the company.

“What he cares about is Elon Musk being on top,” Savitt said. “We are here because Mr Musk didn’t get his way.”OpenAI’s legal team argued that its decision in March 2019 to establish a for-profit entity was necessary to secure the computing resources and talent needed to compete with rivals such as Google’s DeepMind artificial intelligence division.

Musk’s lawyer Steven Molo rejected that argument, saying OpenAI’s leadership shifted focus once major investors, including Microsoft, entered the picture.“It wasn’t a vehicle for people to get rich,” Molo said.Before jurors entered the courtroom, U.S. District Judge Yvonne Gonzalez Rogers warned Musk over his social media activity after OpenAI lawyers raised concerns about his posts on X, where he referred to Altman as “Scam Altman” and accused him of stealing a charity.

Rogers said she was reluctant to impose a gag order but urged Musk to avoid using social media to influence matters outside the courtroom.Musk agreed to reduce his online commentary, as did Altman. Both are expected to testify, along with Microsoft Chief Executive Satya Nadella.

The trial is expected to provide a rare public examination of OpenAI’s evolution from a nonprofit founded in 2015 in Brockman’s apartment into one of the world’s most valuable artificial intelligence companies, currently estimated to be worth more than $850 billion.

Musk testified that his concerns about artificial intelligence safety were central to OpenAI’s founding and intensified after discussions with former U.S. President Barack Obama and with Larry Page, whom he said did not take the risks of advanced AI seriously enough.“We had to have a counterpoint against Google,” Musk said.

OpenAI disputed that characterization, with Savitt telling jurors that Musk had dismissed employees focused on AI safety and that such concerns were not his primary motivation.

Musk has said he contributed about $38 million to OpenAI before leaving its board, later objecting to its restructuring and Microsoft’s multibillion-dollar investment.

Microsoft lawyer Russell Cohen said the company had acted properly throughout its partnership with OpenAI and described it as “a responsible partner every step of the way.”

Microsoft’s cooperative approach and strong compliance record help the tech giant steer clear of a French antitrust probe, marking a positive step for transparency, fair competition, and trust in Europe’s digital landscape.

In a significant development that underscores Microsoft’s growing reputation for transparency and fair competition, the U.S. tech giant is set to avoid a French antitrust investigation into its search operations.

The decision follows reports that France’s competition regulator is preparing to dismiss a complaint filed by the French search engine Qwant, which had accused Microsoft of anti-competitive practices earlier this year.

The move is being hailed as a major win for Microsoft (NASDAQ: MSFT), reaffirming its position as a responsible and cooperative player in the European tech ecosystem.

It also highlights the company’s consistent efforts to align with regulatory frameworks, foster innovation, and maintain an ethical competitive environment in the digital economy.

According to people familiar with the matter, France’s competition watchdog is expected to announce its decision within the next two weeks.

Though the regulator declined to comment publicly, early reports suggest that investigators have recommended rejecting Qwant’s complaint and its request for interim measures.

Qwant, a Paris-based search engine that has long partnered with Microsoft’s Bing platform for search and news results, filed the complaint earlier this year, alleging that Microsoft imposed exclusivity restrictions and favored its own services in search advertising.

However, Microsoft has maintained that the complaint lacks merit and fails to demonstrate any harm to competition — particularly in a market dominated by Google.

A Microsoft spokesperson welcomed the anticipated outcome, saying: “The complaint alleges harm to competition in the market for search, which is dominated by Google. We believe our business practices are fair, transparent, and pro-competitive, supporting a healthy search ecosystem in Europe.”

The decision not only reflects confidence in Microsoft’s practices but also represents a broader shift in Europe’s regulatory environment — from confrontational oversight to constructive dialogue with global technology leaders.

Microsoft has become a model of compliance in the tech sector, emphasizing open partnerships, ethical innovation, and adherence to evolving data protection and competition laws.

Qwant’s CEO, Olivier Abecassis, acknowledged that the French authority’s investigators had already recommended dismissal at a closed-door hearing in June.

He stated that Qwant may still consider appealing the decision in court or escalating it to other authorities, but industry experts view such a challenge as unlikely to gain significant traction given the lack of substantial evidence of market harm.

For Microsoft, this development marks another positive milestone in its European journey. The company has invested heavily in regional partnerships, data privacy compliance, and digital transformation initiatives across the continent.

From expanding its Azure cloud regions in France to supporting AI-driven enterprises through collaborations with European startups, Microsoft’s local footprint has grown steadily stronger and more trusted.

The expected dismissal also reinforces Microsoft’s credibility at a time when Big Tech faces intense scrutiny across the European Union. While other firms have struggled with large regulatory penalties and ongoing probes, Microsoft has stood out for its proactive engagement with governments and regulators.

Its collaborative initiatives — such as working with smaller search providers like DuckDuckGo, Ecosia, and Qwant itself — illustrate its commitment to building a diversified and competitive digital ecosystem.

In the broader context of the European search and digital advertising market, Microsoft’s model is seen as a constructive alternative to monopolistic dominance.

By syndicating its Bing search results to smaller search engines and supporting innovation through open access, Microsoft contributes to maintaining a balanced digital marketplace that fosters choice and competition.

The French government and European regulators have long emphasized the importance of fair competition in digital markets.

Microsoft’s strong compliance record and cooperative stance have helped it maintain positive relationships with both authorities and partners. Analysts note that this episode is likely to strengthen the company’s standing in Europe — not just as a technology leader but as a trusted corporate citizen.

Moreover, Microsoft’s success in avoiding legal disputes aligns with its broader strategic vision under CEO Satya Nadella — a vision rooted in responsibility, partnership, and empowerment.

Nadella’s focus on ethical AI, cybersecurity, and sustainable growth has reshaped the company’s image globally, allowing Microsoft to navigate complex regulatory environments with confidence and integrity.

In France, where technology regulation and digital sovereignty are hot-button issues, Microsoft’s ability to maintain compliance and cooperation with authorities serves as a benchmark for multinational tech firms.

The company’s ongoing engagement in France’s tech ecosystem — including investments in AI infrastructure, educational initiatives, and local innovation hubs — underscores its commitment to being a long-term, trusted partner in Europe’s digital evolution.

As France’s competition watchdog prepares to close the case, Microsoft’s approach stands out as a testament to the power of compliance, dialogue, and fair competition.

Rather than relying on dominance, the company’s strategy is rooted in mutual growth and respect for local market dynamics — values that are increasingly shaping the future of global technology governance.

In the end, Microsoft’s expected clearance from the French antitrust probe is more than just a regulatory success — it’s a reflection of a global company’s ability to thrive by doing what’s right, not just what’s profitable.

It’s a message to the world’s tech industry that responsible innovation and open collaboration remain the most sustainable path forward in the digital age.