- Kaspersky Labs begins shutting down US operations in response to government-imposed sales ban over security concerns.
- Despite the US restrictions and the imminent closure of its operations, Kaspersky Labs continues to serve over 400 million users worldwide.
OUR TAKE
Kaspersky Labs, the Russian anti-virus software maker, has announced that it will begin phasing out its US operations on 20 July. The decision follows the Biden administration’s move last month to ban the sale of Kaspersky products in the United States, citing national security concerns related to the company’s alleged ties to Russian intelligence. As part of the wind-down, Kaspersky has already halted sales to US consumers on its website and plans to eliminate all US-based positions. In the context of wider geopolitical conflicts, this development reflects escalating tensions and growing concerns about cybersecurity involving Russian companies.
—Heidi Luo, BTW reporter
What happened
Cybersecurity giant Kaspersky Labs will begin winding down its operations in the United States from July 20, the Russian anti-virus software maker said on Monday, a response nearly a month after the U.S. government announced a ban on sales of its antivirus products in the country.
The decision to withdraw from the US market was prompted by escalating security concerns over the company’s alleged links to Russian government agencies. On the day of the announcement, Kaspersky disabled the purchase functionality for US customers on its website, which signalled the start of its operational shutdown. In addition, all US-based employees will be terminated as part of the process.
US Secretary of Commerce Gina Raimondo cited security risks as the reason for the sales ban, which also applies to software update downloads, resale and licensing of Kaspersky products.
Also read: US to expand sanctions on Russian semiconductor chip sales
Also read: US cyber agency says Russian hackers stole government emails
Why it’s important
In addition, the government sanctioned Kaspersky’s top executives in June, including the chief business development officer, chief operating officer, legal officer and corporate communications chief, a move that underscored the US government’s serious concerns about the cybersecurity threats.
Headquartered in Moscow, Kaspersky Lab operates globally across 31 countries and serves over 400 million users. The company has committed to challenging the U.S. ban through all legal avenues, firmly denying any involvement in activities that compromise U.S. security.
The ruling leveraged extensive powers established by the Trump administration to prohibit or limit transactions between U.S. companies and technology firms from nations identified as “foreign adversaries,” such as Russia and China.
These restrictions are due to take full effect on 29 September, with new US business activities already blocked since 20 June.
