Today I chatted a bit with a judge who teaches a law course at my university and I told him about the case, he said her already knows about this issue. I asked him if what the company is doing is illegal, and to utmost surprise he replied that what is company is doing according to the Lebanese or even American law is NOT illegal.
By law, the company or developer in this case is considered a 3rd party and holds no liability by developing and even selling that application, the act would have been illegal in case people from the company broke physically or remotely into the government machines to steal the database.
The one who is liable in this case is the one who stole and distributed the database to the "3rd party" which can be companies or individuals, but as we all know this database is in now in the hands of many people all around the country so it would be hard to know who initially committed or helped in committing the crime.
This law seems a bit illogical but it looks like this is the reason why neither the government nor apple can take any measures against developing and selling the applications, as by law what they are doing is not considered illegal. But still, one should keep in mind that in the end we are human beings living in a society, we are supposed to have some values and respect the right of privacy of others. If something is legal it doesn't necessarily mean it is ethical.
Now as for dealing with this situation now, I guess we still have some ways to be able to stop this application but I am not really sure about them yet. I will be reading some law papers in the coming week concerning
Tort laws and I will see if there are any legal ways left. Most probably the company could still be sued because it is breaching the duty of care.