Paragon says it canceled contracts with Italy over government’s refusal to investigate spyware attack on journalist

In a bold move, Paragon, a prominent spyware manufacturer, has announced the termination of its contracts with the Italian government. This decision stems from the government's refusal to allow an investigation into allegations that its technology was used to spy on a journalist. The controversy was highlighted in a statement released on Monday, where Paragon claimed that it offered assistance to both the Italian government and parliament to verify if its systems were involved in the surveillance of journalist Francesco Cancellato. Cancellato was notably the first to report receiving a notification from WhatsApp indicating that he was targeted by spyware linked to Paragon. The company stated, "As the Italian authorities chose not to proceed with this solution, Paragon terminated its contracts in Italy." Paragon's assertion marks a significant moment, as it is reportedly the first instance where a spyware provider has publicly severed ties with a client following abuse allegations. This development adds another layer to a scandal that began in January when WhatsApp disclosed a widespread hacking campaign affecting many users, including those targeted by Paragon's technology. Following Paragon's announcement, the Italian government quickly refuted the claims, stating that the decision to suspend and eventually terminate the contract was mutual. Sources from the government indicated that the Department of Information for Security (DIS) declined Paragon's offer to investigate the agency's use of Graphite spyware, citing concerns over national security and the potential exposure of sensitive data to a foreign company. Cancellato has called for clarity in the situation, questioning who is truthful in the narrative—COPASIR, the Italian parliamentary committee investigating the spyware scandal, or Paragon itself. He urged the company to disclose who was behind the surveillance of Fanpage, the news outlet he operates. Amidst the ongoing investigation, COPASIR confirmed that while certain individuals were lawfully targeted by Paragon's spyware, there was no evidence that Cancellato or others, including a priest involved in humanitarian work, were unlawfully surveilled. The committee expressed its willingness to declassify hearing contents involving Paragon to support its findings. The unfolding drama around Paragon and its dealings with the Italian government raises significant questions about accountability and transparency in the surveillance industry, as advocates continue to call for investigations into the misuse of such technologies.