Paragon Ends Italian Contracts Over Spyware Investigation Refusal

In a rare public move, spyware company Paragon announced it has terminated its contracts with the Italian government after officials declined the company's offer to investigate allegations that its technology was used to spy on journalist Francesco Cancellato. Paragon claimed it proposed a solution to verify whether its spyware was misused, but the Italian authorities refused, citing national security concerns.

This development follows a scandal that erupted in January when WhatsApp revealed a mass hacking campaign targeting users with Paragon's spyware. Paragon, co-founded by former Israeli Prime Minister Ehud Barak, has marketed itself as a more responsible spyware vendor and holds contracts with U.S. and European agencies.

The Italian parliamentary committee COPASIR investigated the spyware scandal and found no evidence that Cancellato was targeted by Italy’s intelligence agencies, which are Paragon customers. However, the government sources explained that allowing Paragon to access spyware logs would compromise sensitive data and national security, leading to the refusal of Paragon's assistance.

Journalist Francesco Cancellato challenged both COPASIR and Paragon to clarify who is telling the truth, urging Paragon to disclose who spied on Fanpage, the news outlet he directs. Meanwhile, other individuals targeted with Paragon spyware were confirmed by COPASIR to have been lawfully investigated for activities related to immigration.

This controversy highlights the complex balance between national security, privacy rights, and accountability in the use of surveillance technologies. Paragon’s unprecedented decision to cut ties over refusal to investigate alleged misuse signals growing scrutiny on spyware vendors and their government clients.

As spyware and surveillance tools become more sophisticated and widespread, transparency and oversight remain critical to prevent abuse. The Paragon-Italy case serves as a cautionary tale for governments and vendors alike about the reputational and legal risks of unchecked surveillance.