Meta’s blockbuster $167 million legal victory against Israeli spy firm NSO Group sends shockwaves through the shadowy surveillance industry after the hacking of 1,400 WhatsApp accounts belonging to journalists and dissidents worldwide.
Key Takeaways
- A California jury awarded Meta $167.3 million in punitive damages after NSO Group was found liable for exploiting WhatsApp vulnerabilities to install spyware on users’ devices
- NSO Group’s Pegasus spyware could infiltrate phones without any user interaction, allowing surveillance of journalists and dissidents across 20 countries
- WhatsApp plans to donate the awarded damages to digital rights organizations to combat surveillance threats
- The landmark verdict stands as the first successful legal action against illegal spyware developers, potentially establishing consequences for the entire surveillance industry
- NSO Group continues to defend its practices as necessary for combating terrorism and has announced plans to appeal the decision
Big Tech Lands Historic Victory Against Surveillance Industry
After a six-year legal battle, Meta Platforms secured a decisive $167.3 million verdict against Israeli surveillance firm NSO Group for hacking WhatsApp accounts. The California jury awarded an additional $444,719 in compensatory damages after finding the Israeli company illegally exploited a WhatsApp vulnerability to install its notorious Pegasus spyware on users’ devices. The ruling by Judge Phyllis Hamilton of the U.S. District Court for the Northern District of California represents the first major legal victory against developers of illegal surveillance technology that threatens user privacy worldwide.
“Today’s verdict in WhatsApp’s case is an important step forward for privacy and security as the first victory against the development and use of illegal spyware that threatens the safety and privacy of everyone,” according to Meta in response to the ruling.
Sophisticated Spyware Targeted Dissidents and Journalists
The case revealed disturbing details about NSO Group’s surveillance capabilities and operations. NSO’s Pegasus spyware represents one of the most advanced surveillance tools available, capable of infecting phones without requiring any user interaction. The targeted attack exploited WhatsApp’s systems to install spyware on 1,400 devices across 20 countries, giving unauthorized access to journalists, human rights activists, and political dissidents. Throughout the trial, NSO Group was criticized for its secrecy and failure to comply with court orders for evidence disclosure.
“NSO’s business is based on hacking American companies, and then dictators can hack dissidents. This verdict sends a clear signal,” said John Scott-Railton, senior researcher at the Citizen Lab at the University of Toronto.
Deterrent Effect on Shadowy Surveillance Industry
Will Cathcart, head of WhatsApp, emphasized the broader significance of the verdict beyond just Meta’s interests. The company announced plans to donate the awarded damages to digital rights organizations, reinforcing their commitment to protecting user privacy. This historic legal victory could establish a crucial precedent for holding surveillance technology providers accountable for their actions and the misuse of their products by government clients with questionable human rights records.
“The jury’s verdict today to punish NSO is a critical deterrent to the spyware industry against their illegal acts aimed at American companies and our users worldwide. This is an industrywide threat, and it’ll take all of us to defend against it,” said Will Cathcart, head of WhatsApp.
NSO Group Faces Multiple Legal and Regulatory Challenges
Despite the verdict, NSO Group maintains that its technology serves legitimate security purposes. The Israeli firm has become what many critics describe as the face of an industry that operates largely in the shadows. Beyond this lawsuit, NSO Group faced additional legal action from Apple in 2021, though that suit was later dropped. The U.S. Commerce Department placed NSO Group on its blacklist in 2021, further restricting its ability to operate in American markets, a move that acknowledged the national security implications of such surveillance technologies.
“We will carefully examine the verdict’s details and pursue appropriate legal remedies, including further proceedings and an appeal. We firmly believe that our technology plays a critical role in preventing serious crime and terrorism and is deployed responsibly by authorized government agencies,” said Gil Lainer, a spokesman for NSO Group.
