Spyware developer Paragon has officially terminated its contracts with the Italian government, citing Rome’s refusal to cooperate in an investigation regarding the potential surveillance of a journalist using the company’s technology.
This unprecedented move marks the first time a commercial spyware vendor has publicly severed ties with a government client following allegations of abuse. The company claims it provided Italian authorities and parliament with a mechanism to determine if its systems were deployed against a journalist in violation of local laws, but the offer was rejected.
The Center of the Controversy
The tension stems from a mass-hacking campaign identified by WhatsApp in January. The messaging giant alerted approximately 90 users that they had been targeted by Paragon spyware. Among those identified was Francesco Cancellato, director of the news outlet Fanpage.
Paragon, which markets itself as a more “responsible” alternative to other industry players, has faced intense scrutiny since the scandal broke. The firm, co-founded by former Israeli Prime Minister Ehud Barak, holds contracts with various international entities, including U.S. Immigration and Customs Enforcement.
Government Denial and Security Concerns
The conflict escalated following a report by COPASIR, an Italian parliamentary committee overseeing intelligence services. The committee concluded there was no evidence that Italian agencies—AISI and AISE—had targeted Cancellato. In response to Paragon’s claims, Italian government sources told news wire ANSA that the contract termination was a mutual decision.
The Italian Department of Information for Security (DIS) reportedly blocked Paragon’s access to logs on the agencies’ “Graphite” spyware systems. Officials argued that allowing a private foreign company to audit internal intelligence logs would compromise national security and expose confidential data to external entities.
A Call for Transparency
Francesco Cancellato has publicly challenged the conflicting narratives, demanding definitive answers. “Who is lying in this story? COPASIR or Paragon?” Cancellato asked in a video statement. He urged the company to identify exactly who targeted his organization, asserting that if Paragon possesses the capability to trace the logs, they should disclose the culprit.
Broader Implications for Surveillance
While the investigation into the journalist’s case remains contentious, the COPASIR report confirmed that other individuals were indeed subjects of “lawful” surveillance. These include members of the nonprofit Mediterranea Saving Humans and David Yambio, founder of Refugees in Libya. Authorities maintained these actions were related to investigations into illegal immigration.
As the standoff continues, COPASIR has expressed “surprise” at Paragon’s public accusations and stated it is prepared to declassify hearing records to defend the integrity of its inquiry.