Eavesdropping Probe Finds Israeli Police Exceeded Authority

The word Pegasus and binary code are displayed on a smartphone which is placed on a keyboard in this illustration taken May 4, 2022. (Reuters)
The word Pegasus and binary code are displayed on a smartphone which is placed on a keyboard in this illustration taken May 4, 2022. (Reuters)
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Eavesdropping Probe Finds Israeli Police Exceeded Authority

The word Pegasus and binary code are displayed on a smartphone which is placed on a keyboard in this illustration taken May 4, 2022. (Reuters)
The word Pegasus and binary code are displayed on a smartphone which is placed on a keyboard in this illustration taken May 4, 2022. (Reuters)

An Israeli government investigation into the use of powerful eavesdropping technology by the police found that they only used it after securing a judicial warrant but that the flood of information exceeded the limits of their authority.

The probe was launched after Calcalist, a local business daily, published an explosive report that the police had used Pegasus, a controversial technology developed by Israel's NSO Group, to spy on public figures. The Justice Ministry rejected those claims in February, saying there was no evidence police had illegally hacked the mobile phones of those mentioned in the report.

The investigative team, led by Deputy Attorney General Amit Marari, released additional findings on Monday. It said there was “no indication” that police had used sophisticated technology to penetrate personal phones without a judicial order. But it said that when the technology was used, police received excess information not covered by the warrants.

It said that while there was no sign that the excess information was used, its acquisition was a “violation of authority.” The statement did not identify the technology.

The Calcalist report had prompted a public uproar, with then-prime minister Naftali Bennett calling the allegations “very serious.” The Justice Ministry launched its investigation shortly after the report came out in January.

The police welcomed Monday's findings, saying they proved that “no deliberate activity was carried out in violation of the law.”

“Serious allegations against the conduct of the police turned out to be wrong, but unfortunately they caused great damage to the public’s trust in the police,” a police statement said.

Pegasus is a powerful tool that allows its operator to infiltrate a target’s phone and sweep up its contents, including messages, photos, contacts and location history — without the target being aware or taking any action.

NSO has been linked to snooping on human rights activists, journalists and politicians in several countries. In November, the US blacklisted the company, saying its tools had been used to “conduct transnational repression.”

NSO says it sells the product only to government entities to fight crime and terrorism, with all sales regulated by the Israeli government. The company does not identify its clients and says it has no knowledge of who is targeted. Although it says it has safeguards in place to prevent abuse, it says it ultimately does not control how its clients use the software.

The Association for Civil Rights in Israel said the latest findings show “major failures” that raise concerns about privacy and the rights of suspects. It called on authorities to bar police from employing such technology until detailed legislation is implemented to govern its use.



Microsoft Beats Expectations, But AI Concerns Force Shares Down

FILE - The Microsoft logo in Issy-les-Moulineaux, outside Paris, France, April 12, 2016. (AP Photo/Michel Euler, File)
FILE - The Microsoft logo in Issy-les-Moulineaux, outside Paris, France, April 12, 2016. (AP Photo/Michel Euler, File)
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Microsoft Beats Expectations, But AI Concerns Force Shares Down

FILE - The Microsoft logo in Issy-les-Moulineaux, outside Paris, France, April 12, 2016. (AP Photo/Michel Euler, File)
FILE - The Microsoft logo in Issy-les-Moulineaux, outside Paris, France, April 12, 2016. (AP Photo/Michel Euler, File)

Microsoft delivered solid quarterly results on Wednesday, beating analyst expectations with revenue jumping 16 percent to $65.6 billion, but questions were raised about the company's big spending on the AI boom.
The tech giant reported net income of $24.7 billion for the quarter ending September 30, marking an 11-percent increase from the same period last year. Earnings per share rose 10 percent to $3.30, AFP said.
The company attributed the solid performance to robust growth in its cloud computing and artificial intelligence businesses.
"AI-driven transformation is changing work... and workflow across every role, function, and business process," said Microsoft CEO Satya Nadella, adding that the company was winning new customers through its AI platforms and tools.
The Redmond-based company has been at the forefront of the generative AI revolution, largely thanks to its partnership with OpenAI, the creator of ChatGPT.
The company has rolled out AI features at a furious pace, mainly under its Copilot brand, leaving investors hopeful for a return on investment from the expensive technology.
But the tech giant warned that its gross margin outlook for its crucial cloud division, or how much money it expects to make, was going to be lower just as its investment in AI infrastructure was set to grow.
The news sent Microsoft's share price down by nearly four percent in after-hours trading.
"Microsoft's latest earnings came in a bit above expectations, but the results may leave some investors wanting more clarity," said Emarketer senior director Jeremy Goldman.
"The true wildcard this quarter has been Microsoft's AI investments. It's pouring cash into building out infrastructure, with major capex implications. Yet, the revenue returns from AI remain more of a promise than a present reality," he added.
Azure, Microsoft's cloud computing platform, saw strong growth with revenue increasing 34 percent, when adjusted for currency fluctuations.
During the quarter, Microsoft also returned $9.0 billion to shareholders through dividends and share repurchases, helping pump up share value.
With the jitters over Microsoft's massive outlays on AI, the company has trailed other tech giants on Wall Street this year, gaining just over 15 percent, while Meta has surged 70 percent and Amazon climbed nearly 30 percent.
In a notable development, Microsoft's gaming division showed substantial growth, with Xbox content and services revenue surging 61 percent, primarily due to the recent Activision Blizzard acquisition, which contributed 53 percentage points to this increase.
Google parent company Alphabet on Tuesday set the scene for the tech earnings season with a solid report, as its cloud computing division posted strong results on the back of AI adoption by search engine users.