Kaspersky to Shut Down U.S. Market Amid Security Concerns

Russia's cybersecurity and anti-virus provider firm, Kaspersky is set to quit the United States market and lay off dozens of employees following the government order issued in June that banned the sale of Kaspersky’s software, citing national security risks.

Starting July 20, Kaspersky will “gradually wind down” its U.S. operations. The company stated its U.S. business is “no longer viable” due to the government ban. This marks a significant retreat for Kaspersky, once a major player in the American cybersecurity market.

Independent journalist Kim Zetter first reported the news, noting that fewer than 50 employees would be affected by the layoffs. Kaspersky spokesperson Sawyer VanHorn, who is also among those laid off, confirmed this figure.

Kaspersky had initially planned to contest the ban, asserting it did not engage in activities threatening U.S. national security. The company vowed to explore all legal avenues to maintain its U.S. operations. However, the U.S. Commerce Department’s decisive action in June, introducing a “first of its kind” ban on Kaspersky’s antivirus software, left the company with little choice but to comply.

Starting from July 20, Kaspersky will no longer be able to sell its software directly to U.S. consumers or through U.S.-based resellers. This restriction has drawn criticism from some resellers who argue that the ban negatively impacts their businesses. Furthermore, after September 29, Kaspersky will not be allowed to push software or security updates to U.S. customers, leading to potentially degraded protection from its antivirus software.

To mitigate the disruption, the Commerce Department implemented a staggered approach to the ban, providing U.S. consumers with time to transition to alternative cybersecurity solutions.

In addition to the Commerce Department’s actions, the U.S. Treasury has sanctioned several senior Kaspersky executives, effectively preventing U.S. customers from purchasing Kaspersky software or engaging in transactions with any future companies led by these executives. Notably, Kaspersky’s CEO, Eugene Kaspersky, was not among those sanctioned.

The U.S. government’s actions against Kaspersky are not new. In 2017, the Trump administration prohibited the use of Kaspersky software across the federal government following an incident in which Russian government hackers stole classified documents from a U.S. intelligence contractor’s home computer that was running Kaspersky software.

Given the nature of antivirus products, which require broad access to devices to identify and neutralize cyber threats, the security concerns surrounding Kaspersky’s software are particularly acute. This level of access makes any potential misuse of the software by hostile entities especially dangerous.