Apple moves to drop suit against spyware developer NSO Group

Large Apple logo on the facade of a glass building
Apple cites changes in the spyware market as another reason behind its decision. (Source: IMAGO / NurPhoto)

Apple will no longer pursue its lawsuit against the spyware developer NSO Group. On Friday the company filed a motion in a California court to have its case dismissed. The company sees “too significant a risk” to its efforts to recognize and defend against spyware attacks against Apple devices.

The US company had filed suit against the Israel-based NSO Group in November 2021. The legal action came after international media had revealed how NSO’s Pegasus spyware had been used to spy on journalists, activists, dissidents, and government officials around the world.

The goal of the lawsuit was to hold the spyware developer accountable for the surveillance and deliberate targeting of Apple users.

But now the company has filed a motion in court to have the case dismissed. Apple cites several reasons for the decision, including its fears about having to disclose important information regarding its own security measures. Three years ago, when first filing the lawsuit, the company “understood that it would involve disclosure of information to third parties” – but since that time the risk has grown.

Infrastructure built to protect users

In November 2021 Apple began to inform users if the company detected signs of a spyware attack. In several instances security analysts were able to find evidence of attacks or spyware infections after users had received alerts from Apple. The company also introduced a “Lockdown Mode” feature designed to wall devices off from potential attacks.

What is Pegasus?

Pegasus is a surveillance software developed by NSO Group, an Israeli company. The spyware can take complete control of an infiltrated device. It can turn on a smartphone’s camera and microphone, or copy all data saved on the phone – without the knowledge of the phone’s owner. Infiltrators using Pegasus can access location data and view passwords. The surveillance software has come in for criticism for years and has been linked to human rights abuses.

In the motion filed Friday, Apple writes that since first filing the lawsuit, it has continued to develop “extensive threat-intelligence information” to guard against spyware attacks. “Compromise of this information – an unavoidable risk inherent in disclosing such information to third parties – would severely undermine the effectiveness of Apple’s program and ability to protect its users.”

The spyware industry has also changed considerably since the lawsuit was first filed, Apple argues. There are now “a growing number of different spyware companies” rather than just “a single, powerful actor,” namely NSO Group. “The result is that even complete victory in this suit will no longer have the same impact as it would have had in 2021,” Apple writes. Three years ago it would have been possible to defeat a “significant portion” of the market – now however there are many more companies that “would be unaffected by the suit and able to continue their destructive tactics.”

Finally, Apple points to reports that the Israeli government allegedly confiscated documents from NSO Group – presumably to prevent them from appearing as evidence in an ongoing lawsuit brought against the developer by Meta and WhatsApp. In light of these reports, Apple worries that it might be difficult to obtain necessary evidence for its case.

Damages sought

In its lawsuit Apple had originally sought an injunction that would bar NSO Group from using any Apple software, services, or devices and from developing or selling spyware for them. The company had also demanded a sum in damages to be determined by the court.

In its original filing, the iPhone manufacturer had sharply criticized NSO group, characterizing the company as “amoral 21st century mercenaries.” The surveillance machinery created by NSO Group and its parent company Q Cyber “invites routine and flagrant abuse,” Apple charged. The spyware developers had also forced Apple “to engage in a continual arms race”: “Even as Apple develops solutions and enhances the security of its devices,” NSO Group was constantly upgrading Pegasus to overcome new hurdles. This caused “huge costs” for Apple.

This past January the court had decided that the suit against NSO Group could go forward. NSO had moved to dismiss the case, arguing that because the company was based in Israel, Apple had to file suit in an Israeli court. The presiding judge was not moved however and ruled that the lawsuit could be tried in the US.

The court is expected to decide in late October on Apple’s latest motion to dismiss the case.

Meta also files suit against NSO Group

A separate suit against NSO Group brought by Meta and WhatsApp is currently before a US court. WhatsApp and its parent company Meta accuse the spyware developer of being responsible for attacks on 1,400 WhatsApp users. NSO allegedly exploited a security loophole in the call function on WhatsApp to smuggle its controversial Pegasus spyware onto users’ smartphones. The device receiving the phone call was infiltrated even if the call was not accepted. The individuals targeted via WhatsApp are believed to include members of the press, lawyers, dissidents, human rights activists, diplomats, and government officials.

After the revelations about the abuse of Pegasus around the world, the US government in November 2021 imposed sanctions on NSO Group: Since then US companies have been prohibited from doing business with the company without special authorization. The US government has imposed similar sanctions on other spyware developers as well. (js)