Cybersecurity Policy Report, Kaspersky to Close U.S. Business After Commerce Department Ban, (Jul 16, 2024)
Organizations Mentioned:Kaspersky Lab | U.S. Department of Commerce
Kaspersky Lab, a cybersecurity firm based in Moscow, plans to shut down its U.S. operations following a recent decision by the Commerce Department to prohibit the company from selling antivirus software and other cybersecurity products and services in the U.S.
“Starting from July 20, 2024 Kaspersky will gradually wind down its U.S. operations and eliminate U.S.-based positions. The decision and process follows the Final Determination by the U.S. Department of Commerce, prohibiting the sales and distribution of Kaspersky products in the U.S.,” a company spokesperson told CPR today via e-mail.
Last month, Commerce’s Bureau of Industry and Security (BIS) issued a final determination finding that the Russian government’s influence over the company presented a national security risk and that a ban should be imposed. It also imposed export controls that prevent U.S. entities from doing business with Kaspersky unless they obtain a license (CPR, June 21).
At the time, Kaspersky said it would “pursue all legally available options to preserve its current operations and relationships,” suggesting it might challenge the ban in court. Kaspersky decided instead to leave the U.S. and focus on markets in other nations, the spokesperson said.
“The company has carefully examined and evaluated the impact of the U.S. legal requirements and made this sad and difficult decision as business opportunities in the country are no longer viable,” the spokesperson said.
“Kaspersky’s business remains resilient, and our key priority remains the same—to protect our customers in any country from cyberthreats,” the spokesperson added. “Being a global cybersecurity vendor, the company will continue investing in strategic markets and remain committed to serving its customers and partners and ensuring their protection.”
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