The Italian government has blocked an agreement between Huawei and telecommunications group Fastweb, where Huawei would be supplying equipment for its 5G core network.
The decision, made at a cabinet meeting late on Thursday, marks the first time Italy has vetoed a supply deal over 5G core networks with Huawei. The Italian government used its veto to prevent Fastweb, the Italian arm of Swisscom, from purchasing Huawei equipment.
“The government has vetoed the operation, asking Fastweb to diversify its suppliers,” a senior government source told Reuters.
While some US allies, such as the UK, have already announced at the state level that they will ban Huawei equipment in the future telecommunications infrastructure, Rome has so far refused to do so officially, although it takes a de facto pro-American position.
Telecommunications companies operating in Italy have introduced get-out clauses in 5G deals with Huawei, allowing them to withdraw should Rome ask for costly requirements in exchange for its green light.