The Biden administration has announced a ban on the sale of antivirus software produced by Russia's Kaspersky Labs in the US, citing national security concerns.

The sweeping new rule, unveiled on Thursday, will prohibit the sale, resale, and licensing of Kaspersky products in the US, affecting a wide range of customers including critical infrastructure providers and state and local governments. The ban will take full effect on 29 September, allowing businesses a 100-day window to find alternative solutions.

The Commerce Department plans to couple this move with the addition of Kaspersky to a trade restriction list, effectively barring US suppliers from selling to the company. This dual action is expected to significantly impact Kaspersky's reputation and potentially harm its overseas sales.

Reuters cited sources which stated that Kaspersky's close ties to the Russian government were deemed to pose a critical risk. There are concerns that the software's privileged access to computer systems could enable the theft of sensitive information, installation of malware, or withholding of critical updates.

Kaspersky, which generated revenue of $752 million in 2022 from over 220,000 corporate clients globally, has consistently denied any connections to the Russian government, maintaining it is a privately managed company.

This action follows previous US government measures against Kaspersky, including a 2017 ban on its products from federal networks. The intensified scrutiny comes amidst heightened tensions between the US and Russia due to the ongoing conflict in Ukraine.

The Commerce Department is leveraging new authority that allows for restrictions on transactions between US firms and tech companies from "foreign adversary" nations like Russia and China.

While users of Kaspersky software will not face legal penalties, they will be strongly encouraged to discontinue its use. Sellers who violate the new restrictions may face fines, with the possibility of criminal charges for willful violations.

Kaspersky and the Russian Embassy have not yet responded to requests for comment on these impending actions.

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