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A National Security Parting Gift to the New Administration: Additional Burdens for IT Supply Chains and Infrastructure as a Service | Wilson Sonsini Goodrich & Rosati

To embed, copy and paste the code into your website or blog: On January 19, 2021, we saw the publication of both an interim final rule from the Department of Commerce (Commerce) to address the security of the U.S. supply chain for information technology (the Rule) 1 and a new cyber-security executive order (the Order), 2 both issued under the authority of the International Emergency Economic Powers Act (IEEPA). These issuances represent the final regulatory efforts by the outgoing Trump administration to exercise enhanced national security oversight over U.S. information technology (IT) companies interactions with foreign actors. Both the Rule and the Order grant the U.S. government new oversight powers over private commercial agreements related to IT between U.S. businesses and foreign entities. The Rule, in particular, creates a regulatory regime that permits Commerce to review many U.S. companies commercial agreements with foreign parties from certain nations most notably,

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