Gov Ban Forces Kaspersky to Shut Down US Operations

Kaspersky Lab, the Russian cybersecurity giant, is set to close its US division and lay off all US-based employees following a ban by the US Commerce Department. This decision, affecting fewer than 50 workers, comes after the Commerce Department cited national security concerns, arguing that Kaspersky's operations in the US were no longer viable.

The ban, which takes effect on July 20, prohibits the sale and distribution of Kaspersky’s antivirus software in the United States. Starting September 29, existing customers will also stop receiving software updates, leading to degraded protection over time.

The announcement marks the end of a nearly two-decade presence in the US for Kaspersky, which initially vowed to fight the ban in court. However, the company has now stated, "The company has carefully examined and evaluated the impact of the U.S. legal requirements and made this sad and difficult decision as business opportunities in the country are no longer viable."

The US government has long been wary of Kaspersky due to its potential ties to the Russian government, a concern exacerbated by Russia's offensive cyber capabilities. Commerce Secretary Gina Raimondo emphasized the risks, saying, "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."

TechCrunch noted that Kaspersky's software will be unavailable for purchase on its US website and existing US customers are encouraged to find alternatives before the update ban in late September. The US Treasury also sanctioned several Kaspersky executives, making it difficult for US customers to transact with the company.

This follows a series of actions against Kaspersky by both the Trump and Biden administrations, starting with a 2017 ban on Kaspersky software across federal networks after concerns that Russian hackers had used the software to steal classified documents from a US intelligence contractor’s home computer.

Axios highlighted that Kaspersky has denied any wrongdoing, maintaining that it does not help Moscow conduct cyber espionage. The company will continue to operate outside the US, including in Europe.