Kaspersky Lab to Shut Down US Operations Following Government Ban

Cybersecurity company Kaspersky Lab will shut down all its US operations and lay off its US-based employees following the recent government ban on the sale and distribution of its products.

The announcement comes shortly after Commerce Secretary Gina Raimondo stated in June 2024 that Moscow’s influence over Kaspersky posed a significant risk to US infrastructure and services.

Kaspersky, which has operated in the US for two decades, initially denied the allegations and planned to challenge the ban in court. However, Kaspersky has now decided to exit the US market.

The popular antivirus provider in a statement to Zero Day confirmed that beginning July 20, it will “gradually wind down” its US operations, as “business opportunities in the country [was] no longer viable.”

According to Techcrunch, Kaspersky’s US website has already ceased selling its products. A message on the site reads, “For legal compliance purposes, Kaspersky products cannot be purchased from your country.”

The US Commerce Department in June 2024 imposed a ban prohibiting the sale of all Kaspersky antivirus and software products to US consumers. This ban includes software or security updates for current licenses. Effective from September 29, 2024, the prohibition extends to the resale of these products and the integration of Kaspersky’s antivirus and security software into other products or services.

In addition to the ban, the US Commerce Department has added three Kaspersky subsidiaries to the US Entity List (trade-restrictions entities list). Moreover, the US Treasury Department sanctioned 12 senior Kaspersky executives after the Commerce Department announcement.

By imposing these sanctions, the current administration aims to prevent US-based suppliers and consumers from conducting business with Kaspersky and the 12 associated executives. Additionally, Commerce Secretary Raimondo (as reported by Zero Day) explained that the gradual ban rollout is intended to allow US consumers enough time to shift to alternative security products.