Joe Biden Bans Sales Of Kaspersky Software In The US, Here's Why

Joe Biden plans to ban the sale of Kaspersky Lab antiviral software in the United States. (photo: x @potus)

JAKARTA - The Joe Biden administration on Thursday, June 20 plans to ban the sale of Kaspersky Lab antiviral software in the United States. This decision, disclosed by a source familiar with the matter, comes in response to the close relationship between this cybersecurity company and the Russian government. This is considered to pose a critical risk to US national security.

The ban will affect major customers in the US including critical infrastructure providers as well as state and local governments. The government's move uses the broad power created by the Trump administration and aims to reduce the risks associated with Russian cyberattacks. This authority will also add Kaspersky to the list of trade restrictions, which greatly affect its reputation and potential overseas sales.

A spokesman for the Commerce Department declined to comment, and Kaspersky Lab and the Russian Embassy also did not respond to requests for comment. Kaspersky had previously confirmed that they were operating independently without ties to the Russian government.

The Biden administration's move is meant to prevent Russia's cyber threats originating from Kaspersky software and to continue to pressure Moscow amid ongoing conflict in Ukraine. This decision demonstrates the government's commitment to using strong new powers to limit transactions between US companies and companies from "foreign enemies" countries such as Russia and China.

The new restrictions will prohibit sales, downloads, resales, and licensing of Kaspersky's software in the US, which will take effect from September 29, giving businesses time to find alternatives. The new business with Kaspersky in the US will be blocked 30 days after the announcement of restrictions.

The impact of bringing Kaspersky into the entity list remains unclear. Although its business in Russia is already under strict US export restrictions due to the conflict in Ukraine, adding Kaspersky's foreign unit to this list could disrupt its supply chain if they rely heavily on input from the US.

Kaspersky has been under scrutiny since 2017 when the US Department of Homeland Security banned its antiviral products from federal networks for alleged links to Russian intelligence. This surveillance intensified after Russia's invasion of Ukraine, in which the US government warned American companies of possible Kaspersky software manipulation by Moscow.

An ongoing national security investigation into Kaspersky, upgraded by the Commerce Department after the invasion, has peaked with this latest move. Kaspersky, which operates the parent company in the UK and has a presence in Massachusetts, reported revenue of US$752 million (IDR 12.4 trillion) in 2022 from more than 220,000 corporate clients worldwide. Its key clients include Piaggio, Volkswagen retail division in Spain, and the Qatar Olympic Committee.