Israeli Spyware Firm Paragon Ends Italy Contracts Amid Journalist Surveillance Dispute

The Israeli spyware company Paragon Solutions has publicly severed its contracts with the Italian government following allegations that its Graphite spyware was used to illegally surveil journalist Francesco Cancellato. Paragon accused the Italian authorities of refusing its offer to assist in investigating whether the spyware was misused, prompting the company to terminate its agreements with Italian intelligence agencies AISI and AISE. The Italian government countered that the contract termination was mutual and cited national security concerns over allowing Paragon access to sensitive data. The issue came to light after WhatsApp alerted Cancellato and others of a mass-hacking campaign involving Paragon spyware, linked to monitoring critics of Prime Minister Giorgia Meloni and other targets. An Italian parliamentary committee, COPASIR, investigated the matter and reported that the spyware was used with prosecutorial consent for limited legitimate purposes such as countering terrorism and illegal immigration, but the controversy led to the suspension and eventual end of the contract. This case marks the first public instance of a spyware provider cutting ties with a client over alleged misconduct and raises concerns about surveillance practices in Italy.