The US Court of Appeals for the District of Columbia Circuit ruled 2-1 that the Trump administration may blacklist Anthropic. The court upheld the government's decision to restrict federal agencies and defense contractors from using the company's products.
The legal dispute centers on Anthropic's refusal to enable specific features in its Claude AI model for military operations. The court concluded that the administration's concerns about the company disabling requested functions qualify as a supply chain risk under 41 U.S.C. Section 4713.
The majority opinion stated that the Secretary of Defense did not exceed his authority under the Supply Chain Security Act. The ruling noted that the administration feared Anthropic might manipulate the model's design to prevent it from performing authorized national security functions.
Judge Karen Henderson dissented, arguing that the statute was intended to address hostile actors infiltrating supply chains, not a contractor's enforcement of product usage restrictions. Anthropic previously sued the administration in March after the initial ban was issued.
A separate ruling by a US District Court in California previously found the blacklisting illegal, citing a violation of 10 U.S.C. Section 3252 and the First Amendment. The appeals court noted that it holds exclusive jurisdiction over procurement actions under Section 4713.
Anthropic is considering further legal options, including an en banc review or an appeal to the Supreme Court. Despite the litigation, Commerce Secretary Howard Lutnick recently stated that the administration and Anthropic have improved their relationship.
