NSO Group, the developer of the controversial Pegasus spyware, is seeking to pause an injunction that prohibits the company from targeting WhatsApp users. In a court filing this week, the company argued that enforcing the permanent injunction would inflict irreparable harm on its business and hinder potential use of its products by the U.S. government.
The motion to stay was filed Wednesday, and it coincides with NSO Group’s recent strategic moves, including appointing a former U.S. envoy to Israel from the Trump administration as its executive chairman and confirming U.S. investors have purchased the company. NSO Group contends that the Northern District Court of California’s decisions could effectively lead to the company’s shutdown.
NSO Group’s Arguments for Pausing Pegasus Injunction
NSO Group’s primary argument centers on the potential for “irreparable, potentially existential injuries” if the injunction remains active. The company stated that the injunction mandates the destruction of code used to access or utilize the WhatsApp platform. “The deletion and destruction of computer code and technologies cannot be undone or remedied by money damages,” the filing notes.
Additionally, NSO Group claims the injunction prohibits entirely lawful activities related to developing and licensing products for authorized government investigations. This, the company asserts, would “devastate NSO’s business and could well force it out of business entirely.”
The company also raised concerns about its competitive position. NSO Group argued that competitors would face no such restrictions, while its own business would be effectively halted. The injunction, as interpreted by the company, would ban any business involving the collection of information from user devices if the target information originates from WhatsApp, even if the collection method does not interact with WhatsApp servers.
Legal Challenges and Public Interest
NSO Group further maintains that the injunction conflicts with the Computer Fraud and Abuse Act (CFAA), a key federal anti-hacking statute. The company pointed to an exception within the CFAA that permits “any lawfully authorized investigative, protective, or intelligence activity of a law enforcement agency of the United States… or of an intelligence agency of the United States.”
The spyware developer also argued that a stay is in the public interest due to Pegasus’s alleged use in combating terrorism and crime. The motion states that the injunction, by not excluding U.S. law enforcement operations, would prevent agencies like the FBI from obtaining or utilizing Pegasus technology, even if they had previously acquired licenses or explored deeper engagement with NSO Group.
The FBI has reportedly purchased a license for Pegasus in the past. Meanwhile, the second Trump administration had previously rejected an attempt by NSO Group to be removed from a Commerce Department trade blacklist. These recent U.S.-focused actions by NSO Group occurred after that decision.
The court’s decision on NSO Group’s motion to stay the injunction pending appeal is now awaited. The outcome will impact the company’s ability to operate and potentially its interactions with U.S. intelligence agencies. Uncertainties remain regarding the full scope of U.S. government use of the NSO Group’s technology.