"Inclusion on the Entity List disallows the export of hardware and software in the US to named organizations or individuals unless approved by the Commerce Department. US companies may still do business with named entities, but such transactions are frowned upon: "
So that's OK then CIA/FBI/Homeland Security etc. can all carry on tapping phones and collecting data using NSO 'devices'.
The US government has made a stand! (but one which won't impact US government activities)