Kaspersky Exits American Market After Ban by Commerce Department

Jul 16, 2024NewsroomNational Security / Data Security

Exiting from the American market, the Russian cybersecurity provider Kaspersky has announced its departure, following a ban imposed by the Commerce Department, citing concerns about national s

Kaspersky Exits U.S. Market Following Commerce Department Ban

Jul 16, 2024NewsroomNational Security / Data Security

Kaspersky Exits U.S. Market Following Commerce Department Ban

Exiting from the American market, the Russian cybersecurity provider Kaspersky has announced its departure, following a ban imposed by the Commerce Department, citing concerns about national security.

Journalist Kim Zetter first broke the news of this closure, which will take effect on July 20, 2024, marking the end of the company’s U.S. operations. This decision will also lead to the dismissal of fewer than 50 U.S. employees.

Cybersecurity

“After thorough evaluation of U.S. legal requirements and assessing the business landscape in the country, Kaspersky made the difficult choice to discontinue its operations in light of limited business prospects,” stated the company.

The ban, enforced by the Commerce Department at the end of June 2024 after an extensive investigation, resulted in Kaspersky being placed on the Entity List, prohibiting American businesses from engaging with the company.

Details of the investigation were not disclosed, but the agency suggested that Kaspersky’s operations in the U.S. could potentially facilitate cyber activities linked to the Kremlin.

According to the Bureau of Industry and Security (BIS), the utilization of Kaspersky software, especially within critical infrastructure in the U.S., could pose risks such as data breaches, cyber espionage, and system failures, impacting national security and public safety.

Customers in the U.S. have been advised to seek alternate technology solutions by September 29, as Kaspersky will stop delivering software updates and antivirus signatures by that date.

Kaspersky has denied the allegations, asserting that its operations do not endanger U.S. national security. The company attributed its decision to withdraw from the U.S. market to the current geopolitical situation and hypothetical concerns rather than a thorough evaluation of its products and services.

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