US Court Fines Israeli Spyware Firm NSO $167mn for Targeting WhatsApp

A federal jury in California has delivered a historic verdict, ordering Israeli surveillance firm NSO Group to pay Meta $167 million in punitive damages. This landmark ruling marks the first time a court has imposed financial liability on a spyware vendor for abuses linked to its software.

The jury's decision sends a strong signal that private firms profiting from invasive surveillance technology will not be shielded by their association with government clients. After a single day of deliberation, jurors found that NSO had acted with "malice, oppression or fraud" in deploying its Pegasus spyware against 1,400 WhatsApp users.

Pegasus, which grants near-total access to a target's device, including microphones, cameras and encrypted messages, was used not against criminals, but journalists, human rights defenders and political dissidents. Meta, which owns WhatsApp, described the hacking as "despicable" and a clear violation of privacy rights.

NSO has long claimed that its spyware is sold only to vetted state clients for national security purposes. However, investigations have shown Pegasus being deployed to facilitate transnational repression by authoritarian regimes. The previous US administration blacklisted NSO over its role in such abuses, making it the first company added to the US entity list for enabling state surveillance.

The jury's decision is expected to add pressure on Washington to further regulate the commercial spyware sector. While the financial penalty may prove difficult to collect, the judgement itself sets a precedent: spyware firms can be held directly accountable in US courts, regardless of the state affiliations of their customers.

In doing so, the case reframes digital privacy not merely as a user expectation, but as a civil right. The impunity long enjoyed by private surveillance actors is coming to an end. This judgement marks a significant shift in the way we think about surveillance and its consequences, and it will likely have far-reaching implications for the global technology industry.

The Implications of the Verdict

The verdict has been welcomed by human rights groups and advocates for digital privacy, who argue that it sends a strong message that companies cannot ignore their responsibilities to protect users' data. The decision also highlights the need for greater regulation of the spyware industry, which has long been criticized for its lack of transparency and accountability.

As the US government considers new laws and regulations to address the growing threat of spyware, this verdict serves as a reminder that the consequences of inaction can be severe. Companies like NSO must be held accountable for their actions, and users must be protected from these types of invasive technologies.

The Road Ahead

While the financial penalty is a significant step forward, it is only one part of a larger effort to address the issue of spyware and digital privacy. In the coming months, we can expect to see increased scrutiny of the tech industry, with lawmakers and regulators pushing for greater transparency and accountability.

As the debate over surveillance and data protection continues, one thing is clear: the future of digital privacy will be shaped by this verdict and the actions taken in response. The question now is whether companies like NSO will be held to account, and what this means for users around the world.