US defense contractor L3Harris is in talks to take over NSO Group’s surveillance technology in a possible deal that will give the US company control of one of the world’s most sophisticated and controversial hacking tools.
Numerous sources confirmed that the discussions focused on the sale of the Israeli company’s core technology – or code – as well as a possible transfer of NSO staff to L3Harris. But any agreement still faces significant hurdles, including requiring the blessings of the U.S. and Israeli governments, which have not yet given the green light to the deal.
This story was reported jointly by the Guardian, Washington Post and Haaretz.
If negotiated, the deal will mark an astonishing turn for the NSO, less than a year after the Biden administration blacklisted the company and accused it of acting “contrary to US foreign policy and national security interests.”
NSO government clients are known to have used surveillance technology to target journalists, human rights activists, senior government officials in US allies and lawyers around the world.
The Guardian and other media outlets also describe in detail how the NSO’s Pegasus surveillance technology was used by the company’s government clients to target American citizens, including Karin Kanimba, daughter of Rwandan dissident Paul Rusesabagina, as well as journalists, activists and American state. employees of the department working abroad.
Asked to comment on the talks, a L3Harris spokesman said: “We are aware of the opportunities and are constantly assessing our customers’ national security needs. At this point, anything beyond that is speculation. “
The talks between the L3 and the NSO were first reported by Intelligence Online.
The White House said it was not “involved in any way in this announced potential deal.” In a statement, a senior White House official said: “Such a transaction, if it takes place, raises serious concerns about counterintelligence and the security of the US government.”
The official also said that the US government “opposes the efforts of foreign companies to circumvent US export control measures or sanctions, including the listing of legal entities by the US Department of Commerce for malicious cyber activity.”
The official said that any US company – especially an authorized US defense contractor – should be aware that a transaction with a blacklisted company “will not automatically remove a person from the list of entities and will encourage intensive review to verify that the transaction poses a threat to counterintelligence for the U.S. government and its systems and information on whether other U.S. actions with the defense contractor may be at risk, the extent to which a foreign entity or government retains some degree of access or control, and the wider implications for human rights.
One person familiar with the talks said that if the deal is negotiated, it is likely to involve selling NSO capabilities on a drastically limited customer base, which will include the US government, the United Kingdom, Australia, New Zealand and Canada – which includes ” the five eyes ”intelligence alliance – as well as some NATO allies.
The man also said the deal faces several unresolved issues, including whether the technology will be located in Israel or the United States and whether Israel will be allowed to continue using the technology as a customer.
The man also said it was too early to confirm the price of any possible deal. The transaction will require approval from the US government, as the NSO is on the so-called list of legal entities of the sales department. Experts said any such transaction would likely require the creation of a new legal entity to receive US approval.
Any deal would also face obstacles in Israel. One of the assumptions in the Israeli cyber industry is that it will have to maintain oversight of Israeli technology in Israel and support the entire development of Pegasus and personnel in Israel.
The NSO is regulated by the Israeli Ministry of Defense, which has the final say on the company’s government clients. Israel has faced intense criticism in the past for agreeing to sell surveillance technology to countries with poor human rights, including Saudi Arabia and the United Arab Emirates.
The NSO, which has been sued by Apple and WhatsApp in U.S. courts, has said in the past that it takes all allegations of misuse of its tools seriously and is investigating such allegations.
The Israeli Ministry of Defense and the NSO declined to comment.
Any takeover of NSO hacking technology would add to the current set of L3Harris surveillance tools already sold to customers of the US government and law enforcement. The Florida-based company, which accounts for about $ 18 billion in annual sales, includes the FBI and NATO as customers.
Any potential deal faces strong opposition from digital rights defenders and human rights groups.
John Scott-Reylton, a senior researcher at the Citizen Lab at the Munk School at the University of Toronto, said he doubted that U.S. agencies and agencies of the United States’ closest allies would trust NSO technology for its most sensitive operations and it is therefore more likely to be sold to local authorities.
“So where will the big market be?” I am afraid that the logical users will be the US police departments. That would be an unprecedented threat to our civil liberties, “he said.
The deal will also raise serious questions about the Biden administration’s commitment to holding the “bad actors” accountable, Scott Reilton said.
“Right now, all eyes are on the NSO. If the White House does not stop this deal, many will conclude that the administration is weak in terms of implementation or that they are cynical and helped an American company take the NSO on sale because it was sanctioned, “he said. any such deal will show that US sanctions have no teeth and will encourage more investment in the “mercenary hacking area”.
Additional reports by Omer Benjakob of Haaretz, Gur Megido of TheMarker and Ellen Nakashima and Craig Timberg of the Washington Post
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