Kaspersky Set to Exit US Market After Government Ban

Cybersecurity firm Kaspersky is set to wind up operations in the US and lay off US-based staff. Kaspersky shutdown has been occasioned by the Department of Commerce decision to ban the Russian firm from marketing and selling its products within the US.

According to TechCrunch, the ban was announced last month. The U.S Department of Commerce cited increased privacy and security risks that pose a threat to national security because Kaspersky’s headquarters are in Russia.

Closure After Two Decades

Kaspersky Lab plans to commence the shutdown process on July 20. The Kaspersky US operation shutdown ends close to two decades of operation in the country. Initially, the cybersecurity firm wanted to challenge the ban claiming that it does not engage in any activities that pose a threat to national security in the U.S.

“The company has carefully examined and evaluated the impact of the US legal requirements and made this sad and difficult decision as business opportunities in the country are no longer viable,” Kaspersky Lab said.

Potential Threats

Kaspersky has a wide user base across the globe. Over 400 million individuals and 240,000 companies use its antivirus software globally. However, it’s not clear how many users and businesses in the U.S will be affected by the Kaspersky US shutdown.

Officials from the U.S government claim that the Russian government could use the popular antivirus software to place Americans under surveillance by collecting data or hacking. Kaspersky denied these claims.

“Russia has shown it has the capacity, and even more than that, the intent to exploit Russian companies like Kaspersky to collect and weaponize the personal information of Americans,” Gina Raimondo, U.S. Commerce Secretary, said at the time of the ban.

Not the First Ban

A ban against the use of Kaspersky by U.S. Government agencies has been in place for a long time. However, the move by the Department of Commerce to ban the sale of software in the U.S was unprecedented.

When the ban takes effect, Kaspersky will not be allowed to sell antivirus products to U.S consumers either directly or through resellers. Some resellers have criticized the ban. Security updates on Kaspersky software will not be allowed after September 29 this year. The Department staggered the ban to enable U.S-based consumers time to find alternative antivirus software.

Previously, a Kaspersky government ban has been effected against the cybersecurity firm by the Trump administration as well as the Biden administration. The Trump administration banned Kaspersky throughout the federal government.

This happened after hackers in the Russian government stole classified documents from the home computer of an intelligence contractor.