Russia's Kaspersky Labs to Exit U.S. Market Amid Regulatory Clampdown
Russia's Kaspersky Labs has announced its departure from the United States, a decision signaled by a notice on the anti-virus software maker's U.S. website. This move follows nearly a month after the Biden administration revealed intentions to prohibit the sale of Kaspersky products in the U.S., citing security concerns linked to Russian governmental influence over the company.
Government Actions and Security Concerns
In a statement last month, U.S. Commerce Secretary Gina Raimondo elaborated on the plans to bar Kaspersky's anti-virus software from the American market. The administration's concerns centered on the potential security threats posed by the Russian company's cyber operations. In tandem, the government imposed sanctions on Kaspersky's senior executives, including the chief business development officer, chief operating officer, legal officer, and corporate communications chief, underscoring these cybersecurity risks.
Operational Wind-Down in the U.S.
CNN reported on Monday that Kaspersky Labs intends to "gradually wind down" its U.S. operations, starting with the layoffs of U.S.-based employees from July 20. Visitors to the company's U.S. website are currently unable to purchase any products, with a message indicating that purchases are "unavailable for U.S. customers."
Upcoming Restrictions and Implications
The new U.S. government restrictions, set to take effect on September 29, will prohibit the inbound sale of Kaspersky software, preventing the download of software updates, resales, and licensing of the product. Furthermore, Kaspersky will be barred from starting new business transactions in the U.S. 30 days after the initial announcement of these restrictions on June 20.