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This is not about countries sanctioning each other. This is the US sanctioning a local company because a foreign company doesn’t follow certain US laws in foreign soil, where such laws don’t apply.

It’s a bit like the US arresting your mom at home in Texas because you ate a baggie of magic truffles in Amsterdam.

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You're being very vague. Please explain what you mean? I don't see anything here about the US "sanctioning a local company," and I'm not aware of that being possible under US law.
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"Clarifying Lawful Overseas Use of Data (CLOUD) Act."
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