They can say "sorry Palantir, we will only sign a contract with you if you commit not to use Claude to provide services" and then Palantir is free to decide if they want to accept the terms of the contract or not. This is how business works.
That would be illegal and ripe for corruption. It would also require the DoD to renegotiate the thousands of existing defense contract it has outstanding.
That’s the entire reason this law exists, because what you’re suggesting is impractical. The department has to confidentially document its rationale for marking a company as a supply chain risk. It’s in the confidential record of this very court case. That’s the legal way to do this.
That would be illegal and ripe for corruption. It would also require the DoD to renegotiate the thousands of existing defense contract it has outstanding.
That’s the entire reason this law exists, because what you’re suggesting is impractical. The department has to confidentially document its rationale for marking a company as a supply chain risk. It’s in the confidential record of this very court case. That’s the legal way to do this.