Although the company's founder Eugene Kaspersky recently offered software source code to the government, the effort did not appear to affect the US government's decision.
Citing from the Ubergizmo page, Kaspersky Lab has now been removed from a list of US government-approved vendors for IT security services and digital photography.
A spokeswoman for the US Public Service Administration said the decision was made after careful review and consideration was made.
What the US Government takes is a big step toward software companies since the US Government suspects links with the Russians. However, Kaspersky dismissed the allegations.
Kaspersky said, "Never helped, nor helped any country in the world for the sake of his espionage."
The company also claimed to be stuck in the middle of a geopolitical fight, in which each party tried to use the company as a pawn in their political game.