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Commerce Secretary Gina Raimondo highlighted the security risk posed by Russia's influence over Kaspersky Lab.
As a result the Biden administration plans to ban the sale of Kaspersky's antivirus software in the U.S due to concerns that it could steal sensitive information, install malware and withhold critical updates.
Raimondo said that Russia has the ability and intent to exploit companies like Kaspersky to weaponize Americans' personal information.
Kaspersky defended itself attributing the U.S decision to geopolitical concerns rather than an evaluation of its products' integrity and stated it poses no threat to U.S national security.
The company plans to pursue legal options to maintain its operations. The Russian Embassy has not commented.
This ban follows a rule from the Trump administration which added Kaspersky to a trade restriction list damaging its reputation and overseas sales.
The move reflects the Biden administration's efforts to mitigate risks of Russian cyberattacks via Kaspersky software especially amid the Ukraine conflict.
It also demonstrates the administration's use of new authority to restrict transactions with tech companies from adversarial nations like Russia and China.
Senate Intelligence Committee Chair Mark Warner supported the ban stressing the risk of allowing Russian software deep access to American devices.
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