Russia's Kaspersky to shut down US business after unprecedented ban
Russian cybersecurity firm, Kaspersky Lab, has revealed plans to "gradually wind down" its US operations and terminate its US-based workforce. The decision follows the Department of Commerce's prohibition on the company's product sales in the US. The closure of Kaspersky's US operations will begin on July 20, ending nearly two decades of presence in America. The company said it has "evaluated the impact of the US legal requirements" and decided to close operations as business opportunities are no longer viable.
Commerce Department cites national security in Kaspersky ban
The Commerce Department's ban on the sale and provision of Kaspersky software in the US was announced last month, citing national security concerns. Officials have expressed worries that the Russian government could potentially exploit Kaspersky's anti-virus software for surveillance purposes through hacking or data collection. Despite these allegations, Kaspersky has vehemently denied any such misuse of its software. The company's products are used by over 400 million people and 240,000 companies globally, although the number of US-based users remains unclear.
Commerce Department's ban rooted in recent executive orders
The legal basis for the Commerce Department's ban is relatively new, stemming in part from a 2021 executive order signed by President Joe Biden aimed at protecting Americans' personal data from "foreign adversaries." This order was related to a similar one signed by then-President Donald Trump in 2019. Prior to the ban, US government agencies were already prohibited from using Kaspersky software. However, the Commerce Department's move to prevent commercial sale of the software in the US is unprecedented.
Kaspersky Lab's future plans post US shutdown
Founded in Moscow in 1997, Kaspersky has grown into one of the world's leading anti-virus software companies, competing with American counterparts like McAfee and Symantec. Kaspersky stated it would "continue investing in strategic markets and remain committed to serving its customers and partners and ensuring their protection." The company confirmed that all employees (less than 50) in the US division will be laid off. Existing users of Kaspersky's software in the US may face issues with updates and malware protection.
