Kaspersky to Close US Division Due to Government Ban
In the face of an impending US ban, Kaspersky, a major Moscow-based cybersecurity and antivirus provider, has announced the closure of its US division and the layoff of its American workforce. The company's departure comes as a consequence of the US government's concerns over potential Russian influence and cyber threats following Russia's actions in Ukraine.
Kaspersky's Departure from the US Market
Kaspersky has faced various restrictions in the US for several years, beginning with a 2017 prohibition on the use of Kaspersky software in government departments and a 2018 extension of this ban to all military systems. US officials frequently express concerns over Kaspersky's Russian roots, fearing that the Kremlin could leverage the company's operations. Despite initial plans to challenge the ban legally, Kaspersky has now acknowledged the irreversible impact of the US's legal requirements on its business prospects.
The US Government's Stance on Kaspersky
US Secretary of Commerce, Gina Raimondo, has emphasized the importance of excluding software from companies tied to nations like Russia from American systems to protect sensitive technology and data. Raimondo cited the ongoing threat of Russia's offensive cyber capabilities as a core reason behind the decision to fully prohibit Kaspersky's operations in the US. The Commerce Department has added Kaspersky to its trade-restrictions list, effectively blocking American companies from engaging in business with the antivirus provider.
Impact on Kaspersky's Revenue and Workforce
The withdrawal from the US market is expected to impact less than 50 employees but will have a significant revenue implication, as the US market accounts for nearly 10% of Kaspersky's total income. Moreover, Kaspersky software currently protects over a million endpoints in the US, a service that will soon cease due to the ban taking effect on July 20, 2024.
As the cybersecurity landscape continues to shift, both companies and governments grapple with the implications of international relations on data protection and digital security.
