Kaspersky Exits U.S. Market Following Commerce Department Ban

Jul 16, 2024NewsroomNational Security / Data Security

Russian security vendor Kaspersky has said it’s exiting the U.S. market nearly a month after the Commerce Department announced a ban on the sale of its software in the country citing a national security risk.

News of the closure was first reported by journalist Kim Zetter.

The company is expected to wind down its U.S. operations on July 20, 2024, the same day the ban comes into effect. It’s also expected to lay off less than 50 employees in the U.S.

“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 company said in a statement.

In late June 2024, the Commerce Department said it was enforcing a ban after what it said was an “extremely thorough investigation.” The company was also added to the Entity List, preventing U.S. enterprises from conducting business with it.

It’s currently not known what was uncovered as a result of the probe, but the agency said the company’s continued operations in the U.S. could serve as a conduit for the Kremlin’s offensive cyber capabilities.

“The manipulation of Kaspersky software, including in U.S. critical infrastructure, can cause significant risks of data theft, espionage, and system malfunction,” the Bureau of Industry and Security (BIS) noted. “It can also risk the country’s economic security and public health, resulting in injuries or loss of life.”

Existing U.S. customers have been urged to find alternative tech solutions ahead of September 29, by which the company is expected to stop providing software and antivirus signature updates.

Kaspersky has refuted the allegations, stating it does not engage in activities that could threaten U.S. national security and that the decision was made based on the “present geopolitical climate and theoretical concerns,” rather than a comprehensive evaluation of its products and services.