Russian cybersecurity firm Kaspersky is ceasing its U.S. operations and laying off several employees following a new U.S. government ban on its software, effective July 20.
This is due to national security risks, causing the company to retreat from one of the world’s largest markets.
Kaspersky announced that it would begin phasing out its U.S. business starting July 20, making the operations unsustainable under the new legal constraints. The decision will impact fewer than 50 employees based in the United States.
The U.S. Commerce Department introduced the ban in June, labelling it a necessary step to protect national security.
U.S. Commerce Secretary Gina Raimondo pointed out issues of the potential for the Russian government to leverage Kaspersky’s software to access and misuse the personal data of American users.
This ban prohibits Kaspersky from selling its software directly or through U.S.-based resellers and also prevents the company from providing updates or security patches after September 29.
This will lead to a gradual decline in the software’s effectiveness in protecting against cyber threats.
Kaspersky initially planned to challenge the ban, arguing that its operations did not pose a threat to U.S. national security. However, the company has now opted to comply with the order, given the huge impact on its business.
The U.S. government’s ban on Kaspersky is not unprecedented. In 2017, the Trump administration banned the use of Kaspersky software within federal agencies following concerns over its prospective misuse by Russian intelligence.
These historical suspicions, coupled with ongoing geopolitical tensions, have led to the current comprehensive prohibition.
Despite the ban, U.S. consumers using Kaspersky products will not be penalised. However, they are strongly advised to transition to alternative security solutions to ensure their continued protection.
Additionally, the U.S. Treasury has sanctioned several senior executives at Kaspersky, barring U.S. entities from conducting business with them.
This move further isolates the company from the U.S. market, making it increasingly difficult for Kaspersky to operate within the country.
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