The claim here is that the spyware was Israeli, not that the state actor using it was Israel. NSO has customers all over the world.
When someone fucks up and some spying is discovered the politicians will act all shocked for a week or so and then it quiets down again because nobody wants the public to think all too much about how much spying on allies their own country does.
Although, I think this show how inverted the mentality is: you're expecting (dirty) spying to be between competing entities or outright enemies, not between allies. Unless allies aren't really so.
Remember that the US did spy on several European heads of states a couple of years ago, including bugging their phones (or attempting to).
The US spying has been linked to explicitly screwing Europe of huge industrial contracts, the biggest one probably being a Boeing/Airbus competition. I don't see that invalidating anything, certainly not showing that this is harmless.
>It has become “abundantly clear” that the equity in NSO is “valueless”, the consultancy firm brought in to manage the fund that owns the blacklisted cyber group said in court filings.
https://www.ft.com/content/24584247-0fd4-4826-bcac-f726ad17a...
Yeah, sure, pressure that they reduce the price for their licences perhaps.
> Pegasus spyware is classified as a weapon by Israel and any export of the technology must be approved by the government. [0]
Please explain how many Toyota Hiluxes are classified as weapons, require special government approval, etc.