In a significant ruling, a U.S. federal court has ordered Israeli spyware developer NSO Group to cease all operations targeting WhatsApp, marking a major development in a years-long legal battle between the controversial cybersecurity firm and Meta Platforms, WhatsApp’s parent company. However, the court also reduced the damages sought by WhatsApp, partially easing the financial pressure on NSO.

Background: WhatsApp vs. NSO Group

The dispute dates back to 2019, when WhatsApp accused NSO Group of using its Pegasus spyware to infiltrate the accounts of over 1,400 users, including journalists, human rights activists, and government officials. The lawsuit alleged that NSO exploited WhatsApp’s video calling feature to secretly install surveillance software on target devices, violating both U.S. computer fraud laws and WhatsApp’s terms of service.

Court Restrains NSO from Future Exploits

Judge Phyllis Hamilton of the U.S. District Court for the Northern District of California ruled that NSO Group’s conduct violated multiple U.S. statutes, affirming that private companies are not entitled to sovereign immunity, a defense NSO previously attempted to use due to its work with foreign governments. The court’s injunction now prohibits NSO from developing, marketing, or using spyware that targets WhatsApp or its infrastructure.

Damages Reduced but Accountability Maintained

While Meta initially sought substantial financial penalties, the court decided to reduce the damages, citing complex jurisdictional factors and partial evidence limitations. Legal experts say this outcome reflects a balance between accountability and practicality, ensuring NSO faces legal restraint without imposing disproportionate punishment.

Meta Applauds the Decision

A Meta spokesperson welcomed the ruling, stating that it sends a strong message against unlawful surveillance. “This judgment reinforces that the use of spyware to target private communication platforms is unacceptable and will be met with legal consequences,” the spokesperson said.

NSO’s Response and Future Outlook

In response, NSO Group maintained that its software is sold only to government clients for counterterrorism and law enforcement purposes, and that it “remains committed to ensuring proper use.” However, analysts suggest this ruling could further isolate NSO in international markets, where growing regulatory scrutiny and export restrictions have already constrained its operations.

A Turning Point for Digital Privacy Enforcement

The decision is being hailed as a landmark victory for digital privacy and accountability, potentially setting a precedent for how courts worldwide handle cases involving private surveillance technology and cross-border cyber intrusions.