D.C. Circuit Upholds the Anthropic Ban: What It Means for Federal Contractors
· Source: natlawreview.com
In short
On September 25, 2026, the U.S. Court of Appeals for the D.C. Circuit upheld the Department of War's exclusion of Anthropic's Claude AI models from its supply chain under the Federal Acquisition Supply Chain Security Act (FASCSA), meaning contractors may be required to stop using Anthropic products in federal contract performance. The 2-1 decision found that Anthropic's embedded usage restrictions constituted "manipulation" of a covered product and rejected the company's due process and First Amendment challenges, while a dissent warned the ruling is dangerously broad. The article outlines practical compliance steps for contractors, including responding to certification requests and anticipating contract modifications.
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In the issue of week 40, 2026: Supply Chain AI Advances, but Data, Governance and Capacity Set the Pace
Tags: anthropic, supply chain, government contracts, procurement, AI regulation, compliance