Iran Says WhatsApp A Tool For Israeli Surveillance — Meta Hits Back, Calling It 'False Reports' - Meta Platforms (NASDAQ:META)

Meta Platforms, Inc.'s META instant messaging service, WhatsApp, is pushing back against allegations by the Iranian government that it is being used by Israel to identify and target individuals.

What Happened: On Tuesday, Iran's state-run news agency IRIB reported that authorities warned citizens to stop using WhatsApp, Telegram and other "location-based applications," asserting that they are tools for Israeli surveillance, reported CNN.

In response, a WhatsApp spokesperson issued a statement expressing concern.

"We're concerned these false reports will be an excuse for our services to be blocked at a time when people need them the most," the spokesperson said.

The company underscored that it does not track users' precise locations and that all communications are secured.

"All of the messages you send to family and friends on WhatsApp are end-to-end encrypted, meaning no one except the sender and recipient has access to those messages, not even WhatsApp," the spokesperson said.

The platform also stated that WhatsApp does not provide mass user data to any government and pointed to Meta's public transparency reports detailing rare instances of lawful information requests, the report added.

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Why It's Important: Meta’s platforms have previously faced restrictions from Iran's government during times of civil unrest.

In 2022, during widespread protests over the death of 22-year-old Mahsa Amini in police custody, Meta reported that Iranian authorities had heavily restricted access to Instagram to limit the flow of protest-related information, reported CBS News.

Israel launched airstrikes on Friday aimed at Iranian nuclear sites, key scientists and senior military officials. In response, Iran fired dozens of ballistic missiles.

Since then, both countries have exchanged multiple rounds of missile attacks. The Israeli military reports at least 24 deaths and many injuries in Israel, while Tehran states that over 224 people have died in Iran since the strikes began, the report added.

According to the internet watchdog group NetBlocks, internet usage in Iran dropped by 75% on Tuesday amid the growing conflict.

Price Action: On Tuesday, Meta fell 0.70% during regular market hours and dipped another 0.38% in after-hours trading, according to Benzinga Pro.

Benzinga's Edge Stock Rankings reflect a sustained positive trend for META over the short, medium and long term. Additional performance data is available here.