NSO Group ordered to pay WhatsApp $170 million in lawsuit

Israeli spyware company and maker of the Pegasus software, NSO Group, has been ordered by a US federal court to pay approximately $170 million in damages to WhatsApp and its parent company, Meta.

NSO Group has become an icon of the largely underground spyware market in recent years and is increasingly used by governments to spy on dissidents, journalists, and politicians.

This decision, the final step in a process that began in 2019, is seen as a major victory for privacy advocates and those who oppose NSO Group’s controversial Pegasus software.

According to a Meta spokesperson, the decision, following a day of deliberation by jurors, orders NSO Group to pay WhatsApp over $440,000 in compensatory damages, as well as approximately $167 million in punitive damages.

This decision stems from an initiative linked to NSO Group that exploited video calling systems in 2019 to send malware to approximately 1,400 WhatsApp users, many of whom worked for non-governmental organizations.

WhatsApp had filed a complaint in court after the plot was uncovered.

NSO Group had previously been found responsible for hacking WhatsApp user accounts and had set a precedent for organizations targeted by spyware to pursue companies that develop malware.

Immediately after the decision, a post published on Meta’s site celebrated the victory and stated that WhatsApp would seek a court order to ensure “NSO does not target WhatsApp again”.

It was also added that Meta would donate a certain amount to digital rights organizations working to expose the misuse of spyware. Furthermore, WhatsApp plans to publish transcripts of deposition videos of NSO Group executives and others to help researchers fully understand how spyware is used globally.

The post stated, “Today’s decision in the WhatsApp case is a significant step for privacy and security, representing the first victory against the development and use of illegal spyware that threatens everyone’s safety and privacy”.

Apple had also sued NSO Group seeking damages for spyware used against its customers, but withdrew the lawsuit last year, concluding that the case could expose sensitive data of Apple users.

NSO Group has repeatedly pushed back against criticism, arguing that the Pegasus spyware is used for good purposes, such as catching serious criminals.

Gil Lainer, NSO Group’s vice president of global communications, stated on Tuesday that the decision was “another hurdle in a long legal process” and said, “We believe our technology plays a critical role in preventing serious crime and terrorism and is used responsibly by authorized government agencies”.

Lainer said, “We will carefully review the details of the decision and pursue appropriate legal avenues, including further litigation and appeals,” and added that the company remains “fully committed to our mission of developing technologies that protect public safety” while operating within the legal framework.

The European Parliament had also established a committee to investigate the use of Pegasus in EU countries.

Last year, the Biden administration supported other countries’ commitment to using spyware responsibly, and the Trump administration had recently announced support for international efforts to establish a code of conduct regarding the use of such software.