Microsoft Updates Compliance After Nayara Fiasco

New Delhi, Oct 10 (PTI) Weeks after it got embroiled in a legal dispute over blocking of email services to a Russia-backed refinery, tech super giant Microsoft Corp has revamped its compliance framework, unveiling a new set of digital commitments designed specifically for India.

In July this year, when the European Union sanctioned India-based Nayara Energy for its Russian links, Microsoft Corp - apparently following a set protocol - stopped providing email and other services, prompting the refiner to sue the tech giant in the Delhi High Court. It restored the services before the court heard the matter.

To avoid such episodes in the future, Microsoft has introduced updated review protocols, jurisdictional safeguards, and transparency mechanisms.

"In support of national priorities, Microsoft has introduced a set of governance measures designed to modernise our compliance framework and reaffirm our role as a reliable, long-term partner to the public sector and critical infrastructure domains, including healthcare, energy, telecommunications, and financial services.

"These actions demonstrate our proactive approach to responsible technology and regulatory collaboration. To translate this approach into action, Microsoft is introducing a set of concrete measures designed for India's unique needs," Microsoft said in a blog post.

New measures include the establishment of a Microsoft Public Sector and Critical Infrastructure Customer Council to enhance collaboration with sectors like energy, healthcare, and financial services.

Chaired by Microsoft India and South Asia President Puneet Chandok, the council will serve as a platform to enable dialogue on technology, policy, and contractual matters.

The compliance overhaul also features risk-based review protocols with validation checkpoints, escalation pathways, and cross-functional oversight to ensure proportionate and legally robust actions.

Additionally, Microsoft has introduced contractual transparency and customer assurance measures, committing to notify clients of any foreign government orders mandating service suspension and seeking legal remedies to protect service continuity.

The company stated that its renewed privacy and data protection protocols are aligned with India's regulatory standards.

"Microsoft remains steadfast in its commitment to making India AI-first with trust, transparency, and collaborative governance.

"We welcome continued dialogue and reaffirm our dedication to strengthening India's digital ecosystem with integrity, stability, security, and a shared purpose to accelerate India's AI-first future," said Mike Yeh, Regional Vice President, Corporate External and Legal Affairs, Microsoft Asia.