A recent ruling against NSO Group by a federal judge marks a significant victory for WhatsApp in its battle against spyware abuse. Privacy advocates hailed the decision as a step toward accountability for the notorious spyware maker. However, experts caution that the impact on the spyware industry might be less groundbreaking than it seems.
The Case Against NSO Group
The legal fight began in 2019 when WhatsApp, owned by Meta, filed a lawsuit against NSO Group, the creators of Pegasus spyware. WhatsApp accused NSO of hacking 1,400 users’ devices, including journalists, activists, diplomats, and dissidents. The spyware enabled zero-click access to these devices, making it a global privacy threat.
In late 2024, a California federal judge ruled that NSO violated anti-hacking laws and breached WhatsApp’s terms of service by infiltrating its servers to deploy Pegasus. This ruling stunned the spyware industry and human rights advocates alike, setting the stage for a trial in March to determine damages.
A Limited Legal Impact
While the ruling is symbolic, its broader legal precedent is limited. Legal experts point out that the decision doesn’t address whether victims outside the U.S. can sue foreign spyware firms in American courts—an ongoing hurdle in similar cases. The judge sidestepped jurisdictional challenges by focusing on NSO’s failure to produce evidence, such as its source code. This tactic, while effective in this case, offers little guidance for future litigants.
Can NSO Survive?
Even if WhatsApp wins damages, the long appeals process means payment could be years away. Experts argue that NSO could declare bankruptcy, rebrand, and continue operations. The skills and technology driving the spyware industry won’t disappear, especially as these companies often operate in jurisdictions outside U.S. influence.
Moreover, Israeli courts, which hold sway over NSO, might resist enforcing U.S. judgments, citing national security concerns. If enforced, the size of the damages—especially punitive ones—will determine whether NSO faces a financial reckoning.
Broader Industry Implications
Despite the obstacles, this ruling has sent shockwaves through the spyware industry. Companies like NSO operate with relative impunity, often backed by state actors and private equity firms. The possibility of reputational damage and financial risks could deter Western investment in these firms.
Jen Roberts of the Atlantic Council notes that the case might inspire lawsuits against lesser-known spyware companies, broadening the push for accountability. At the very least, the ruling imposes costs on firms like NSO, from legal fees to heightened scrutiny.
A Long Road Ahead
Human rights advocates emphasize that while the WhatsApp decision is a step forward, the battle against the spyware industry is far from over. Natalia Krapiva of Access Now highlights the industry’s ties to powerful state actors, making legal challenges complex and resource-intensive. Nonetheless, victories like this demonstrate that accountability, though difficult, is achievable.
What’s Next for the Spyware Industry?
The ruling underscores the growing momentum against commercial spyware abuse. While firms like NSO still enjoy support from influential backers, the legal and financial pressures are mounting. As awareness of the spyware industry’s abuses grows, so does the resolve of those fighting to hold it accountable.
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