Huawei

U.S. Federal Appeals Court upholds FCC Huawei subsidy ban

The three-judge panel also dismissed a claim by that the FCC lacked the expertise to designate the company's equipment as a security risk

A U.S. federal appeals court has Friday to hear Huawei’s request to throw out a rule used to bar rural phone carriers on national security grounds from using government funds to purchase its equipment. The 5th Circuit Court of Appeals ruled that the Federal Communications Commission was fully within its power and competence to issue the rule barring “Universal Service Fund” subsidies recipients from buying equipment or services from companies deemed national security risks.

The three-judge panel also dismissed a claim by that the FCC lacked the expertise to designate the company’s equipment as a security risk to U.S. telecommunications infrastructure.

“Assessing security risks to telecom networks falls in the FCC’s wheelhouse,” the judges wrote in a 60-page opinion, rejecting any suggestion it was some sort of “junior-varsity” agency on national security matters.

Huawei did not immediately offer a response to the ruling.

The Trump administration imposed a series of sanctions on Huawei, claiming it could not be trusted not to spy for Beijing because Chinese law so compels it. Huawei says it is employee- not government-owned and denies it might facilitate Chinese spying.

Huawei sued the FCC in late 2019 after the agency voted to bar rural carriers from using government subsidies to buy equipment from Huawei or its Chinese rival, ZTE Corp. At the time, the company called the decision “based on politics, not security.” It claimed the FCC was exceeding its authority by making national security judgments.

Friday’s decision was in line with a longstanding tradition of U.S. courts not to second-guess government judgments about national security.

Huawei’s U.S. sales plunged after a congressional panel warned in 2012 the company and ZTE were security risks and told carriers to avoid them. In May of 2019, the Trump administration tightened the noose by blocking access to U.S. technology and components, including semiconductors and Google’s popular mobile services.

My Cart Close (×)

Your cart is empty
Browse Shop

Rapid Mobile

Rapid Mobile uses cookies, tokens, and other third party scripts to recognise visitors of our sites and services, remember your settings and privacy choices, and - depending on your settings and privacy choices - enable us and some key partners to collect information about you so that we can improve our services and deliver relevant ads.

 

By continuing to use our site or clicking I Accept, you agree that Rapid Mobile and our key partners may collect data and use cookies for personalised ads and other purposes, as described more fully in our privacy policy.

 

You can change your settings at any time by clicking Manage Settings or by visiting our Privacy Centre for more detailed information.

 

Privacy Settings saved!
Cookie Services

We need your consent so that we and our trusted partners can store and access cookies, unique identifiers, personal data and information about your browsing behaviour on your device. This enables us to serve relevant content and advertising to you, and to improve the service that we provide to our readers. This only applies to rapidmobile.biz.Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer.

These cookies allow us to count visits and traffic sources, so we can measure and improve the performance of our site.

We track anonymized user information to improve our website.
  • _ga
  • _gid
  • _gat

Save my preferences