They didn't freaked since the order was to still allow 350 million people using it: there is, in such large population, everything, including single persons very against the country, the government and so forth. If they really freaked they would say "we need to investigate, you have to retire the model". That would be a more defensible POV at least.
I don’t think that’s accurate. Export control is a total ban, for 350 million citizens and everyone else, just via a legal technicality/exploit.
All of the government’s options to retire/ban Fable entirely would have required expensive protracted (potentially years long) legal battles. The government wanted to make Anthropic feel pain in the short term, so they looked around for pre existing laws that could be exploited to do that.
Enter export control—a law that doesn’t require banning a product outright to effectively ban it for everyone. Because Anthropic has no way of telling whether a given user is a foreign national, and because even a few false negatives in any check they did for that would expose them to serious criminal charges, they had to disable the model for everyone. The government knew very well that they would have to.
It’s similar to GDPR in a way. For GDPR, tons of websites started complying for all their users worldwide, simply because IP location detection is too fallible, and the legal costs of even a small number of detection failures for EU citizens were potentially steep.
Why Anthropic can't ask users for passports and provide Fable only to the ones that certify?
They might well do that, but that takes a lot of time and money to implement, meaning that the government’s goal of causing them immediate pain for minimal effort is still achieved.
It’s likely a better use of anthropic’s resources to try to get the export controls lifted by appeasing the government. I’m not saying that’s a good thing; it’s a stupid situation to be in in the first place for reasons many others in this thread have pointed out.