Italian government denies Paragon has cut spyware contract

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ROME (Reuters) – Italy denied on Wednesday that Israeli spyware maker Paragon had cut ties with Rome following allegations that the Italian government had illegally used its technology to hack the phones of critics instead of criminals.

“Paragon has never suspended the service and has not terminated its contract,” the cabinet undersecretary for intelligence matters, Alfredo Mantovano, told reporters.

Luca Ciriani, the minister for parliamentary relations, also addressed the issue in a parliamentary session, reiterating that Italy’s intelligence service had respected the law and had not used the Paragon software to spy on “entities specifically protected by that law, primarily journalists”.

Meta’s WhatsApp chat service revealed earlier this month that Paragon spyware had targeted scores of users, including a journalist and a human rights activist critical of Prime Minister Giorgia Meloni.

Italy’s government subsequently said that seven mobile phone users in the country had been targeted by the spyware, which is intended for use on criminals. It denied any involvement in the illicit hack and called for an investigation.

However, the Guardian and Haaretz newspapers reported last week that Paragon had cut ties with Italy, allegedly because it did not believe the government denial.

Paragon, which works exclusively with state entities, and its owner, Florida investment group AE Industrial Partners, has not responded to repeated emails from Reuters about the reports.

Ciriani told parliament at that Paragon was still working with Italy.

“All systems have been and are fully operational against those who threaten the interests and security of the nation,” he said.

Ciriani added that Italy’s judiciary should investigate the alleged hacks on reporters and human rights activists. “The Italian Services are ready to provide all their support,” he said.

(Reporting by Angelo Amante and Crispian Balmer; Editing by Angus MacSwan)