Kaspersky to shut down US business in response to ban

16 Jul 2024

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Kaspersky initially planned to pursue legal options to fight the US ban, but now says business opportunities in the country are ‘no longer viable’.

Russian cybersecurity company Kaspersky Lab is shutting down its US operations, after being hit with a national ban last month.

The ban means that Kaspersky and its subsidiaries will not be able to sell software products in the US or provide updates to software already in use. The US issued this ban due to concerns that Kaspersky may have ties to the Russian government.

Kaspersky initially said it would pursue legal options to preserve its operations, but it has told staff that it will start winding down its US operations this week. This wind-down will begin on 20 July, when the effects of the ban will start to kick in.

The news was first reported by Zero Day, which received a statement from Kaspersky on the decision – this statement has since been shared to other media outlets. The company said the closure will impact less than 50 employees.

“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 said.

There are also reports that customers trying to make purchases on Kaspersky’s US website were informed that purchases are now “unavailable for US customers”.

The full restrictions on the company, including the banning of Kaspersky software updates, resales and licensing of the product in the US – will come into effect on 29 September, Reuters reports.

Kaspersky was founded in Moscow, Russia nearly three decades ago and soon became one of the leading antivirus providers in Europe and North America. But the company has faced US scrutiny over its connection to Russia.

Last month, US secretary of commerce Gina Raimondo said that the ban is a result of the Biden administration’s commitment to “protect our national security and out-innovate our adversaries”.

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Leigh Mc Gowran is a journalist with Silicon Republic

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