Kaspersky to Exit US Market
Following the recent US ban on the sale of all Kaspersky products, the Moscow-based cybersecurity and antivirus provider has announced that it will permanently close its US-based business and lay off its workers.
Impact of US-Russia Tensions
Russia’s interference and subsequent invasion of Ukraine have damaged an already troubled relationship and deepened US suspicions around the use of Kaspersky software. The ban comes into effect on July 20, 2024, at which point Kaspersky will begin its winding-down process.
Previous Restrictions and Current Ban
Back in 2017, Kaspersky faced its first restrictions after the Department of Homeland Security banned its software from all government departments and agencies. This was followed by a 2018 ban from all US military systems. US officials frequently cite Kaspersky’s Russian roots and concerns that the Kremlin could force the company to provide access to its operations.
Kaspersky’s Response
Initially, Kaspersky said it would fight the ban in court. However, this latest revelation indicates that the company has accepted its fate. In a statement, Kaspersky said, “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.”
Kaspersky has frequently denied any influence or control by the Russian government. Speaking to reporters, US Secretary of Commerce Gina Raimondo said, “Given the Russian government’s continued offensive cyber capabilities and capacities to influence Kaspersky’s operations … we have to take the significant measure of a full prohibition if we’re going to protect Americans and their personal data.”
Concerns Over National Security
Raimondo further explained, “When Americans have software from companies owned or controlled by countries of concern – such as Russia, such as China – integrated into their systems… those countries can use their authority over those companies to abuse that software to access and potentially exploit sensitive U.S. technology and data.”
Economic Impact on Kaspersky
Kaspersky confirmed that withdrawing from the US market would affect “less than 50 employees in the U.S.” However, a report by the company last year suggested that the US market comprises “just under 10%” of its total revenue and that Kaspersky software protects “more than a million endpoints” in the US. The Commerce Department has placed Kaspersky on its trade-restrictions list, preventing US companies from doing any further business with the Moscow-based company.
