US Bans Trade with NSO Group Over Pegasus Spyware

NSO Group Faces Significant Restrictions Following US Commerce Department Action

NSO Group, a developer of surveillance software, is confronting potentially severe challenges. The US Commerce Department has placed the company on its Entity List, effectively prohibiting trade with the firm.

This action prevents US-based companies from engaging in business with NSO Group without obtaining specific authorization. Approval is considered improbable, given the regulations do not permit license exceptions for exports and the US government is predisposed to deny review requests.

Accusations of Enabling Authoritarian Surveillance

NSO Group, alongside fellow Israeli firm Candiru – also included on the Entity List – is facing allegations of facilitating hostile surveillance activities by authoritarian regimes.

These companies are accused of providing spyware, such as NSO’s Pegasus, to governments with authoritarian tendencies. These tools were reportedly used to monitor activists, journalists, and other dissenting voices in an attempt to suppress political opposition.

The Commerce Department stated this action aligns with the Biden-Harris administration’s commitment to prioritizing human rights as a central tenet of US foreign policy.

Broader Trade Restrictions

The recent trade restrictions extend beyond NSO Group and Candiru.

Positive Technologies, a Russian company, and Computer Security Initiative Consultancy, based in Singapore, have also been added to the Entity List, accused of distributing hacking tools.

NSO Group’s Response

We reached out to NSO Group for a statement, but the provided media contact address resulted in an error.

The company has consistently refuted allegations of enabling abuses, including denying the use of Pegasus to target journalist Jamal Khashoggi, who was later murdered.

NSO Group previously stated it had restricted access in cases of prior misuse and even engaged a libel attorney to challenge investigative journalists and their sources, alleging misinterpretations and unsubstantiated claims.

However, the Commerce Department asserts it possesses evidence substantiating NSO Group’s actions.

While not necessarily signaling the company’s demise, NSO Group may encounter significant operational difficulties without access to American partners it previously relied upon, similar to the challenges faced by Huawei.

Update from NSO Group

Update 11/3 12PM ET: A spokesperson for NSO Group conveyed the company’s “dismay” regarding the decision to Engadget.

The spokesperson asserted that their tools have assisted the US in “preventing terrorism and crime.” NSO Group indicated it would seek a reversal of the ban and reaffirmed its claims of maintaining “the world’s most rigorous” human rights and compliance protocols.