Italian government under pressure in Paragon spyware row

ROME (Reuters) - Italy faced pressure on Friday to explain its relationship with Israeli spyware maker Paragon following reports that the company had cut ties with Rome over allegations that the government had used its technology to hack the phones of critics instead of criminals.

"The Paragon scandal cannot simply be brushed aside ... Those who are responsible must be held accountable," said former prime minister Matteo Renzi.

After Meta's WhatsApp chat service revealed last week that Paragon spyware had targeted scores of its users, two Italians critical of Prime Minister Giorgia Meloni - a journalist and a human rights activist - announced that they had been impacted.

Responding to these claims, Italy's government said on Wednesday that seven mobile phone users in the country had been targeted by the spyware, which is intended for use on criminals. It denied any involvement in the illicit hack and called for an investigation.

However, the Guardian and Haaretz newspapers reported on Thursday that Paragon had cut ties with Italy, allegedly because it did not believe the government denial.

Paragon, which works exclusively with state entities, and its owner, Florida investment group AE Industrial Partners, did not immediately respond to emails about the reports.

Meloni's office reiterated its statement from Wednesday.

However, opposition politicians demanded more information, accusing the government of concealing the truth.

"The Paragon affair seems to be an extremely serious matter. The government must provide clarification ... it cannot bury its head in the sand on this," said Elly Schlein, leader of the largest opposition group, the Democratic Party.

Italy's Deputy Prime Minister Matteo Salvini suggested on Friday that a "settling scores within the intelligence services" might have been to blame for the misuse of the spyware.

However, he later rowed back on this comment, claiming he had no knowledge of the incident and was referring to other recent news involving spy agencies.

(Reporting by Crispian Balmer, Editing by Louise Heavens)