Efforts by various governments, including the US, to crack down on the proliferation of powerful spyware tools such as NSO Group’s Pegasus and Intellexa Consortium’s Predator have faced significant challenges. These tools, despite being potentially useful for law enforcement and intelligence purposes, have been widely used by authoritarian governments to surveil journalists, dissidents, and ordinary citizens, raising concerns about human rights violations.
In response to these concerns, Western governments have imposed sanctions and other enforcement measures on companies involved in the development and sale of spyware. For instance, in 2021, the US Department of Commerce sanctioned NSO Group, Candiru Ltd., and two suppliers for trafficking in cyber exploits. Intellexa Consortium was added to the list in 2023 for similar reasons, as reported by The Atlantic Council DFRLab.
Despite these sanctions, the spyware market has continued to thrive. Vendors like Predator have adapted to evade detection and location tracking by anonymizing their operations. This has made it difficult for researchers and cybersecurity experts to monitor the spread of spyware and hold these companies accountable.
The Atlantic Council’s report highlighted how spyware vendors, including Candiru Ltd. (now known as Saito Tech Ltd), have used various tactics to circumvent sanctions and regulatory measures. By establishing subsidiaries and changing names, these vendors have managed to continue their operations and attract investors from different countries.
The concentration of spyware vendors in countries like Israel, India, and Italy has also been noted in the report. While Israeli companies like NSO Group have received a lot of attention, the report calls for broader sanctions on companies based in India and Italy, where several prolific spyware vendors are located.
In order to effectively combat the spread of spyware, the report recommends increasing transparency in the market and enforcing stricter controls on investments in these companies. By holding spyware vendors and their supply chains accountable, governments can work towards protecting human rights and preventing privacy violations.
Overall, while efforts to curb the misuse of commercial spyware have had some impact, the evolving tactics of spyware vendors highlight the need for continued vigilance and enhanced regulatory measures. The challenge now lies in closing loopholes and ensuring that spyware vendors are held accountable for their actions.

