Huawei Technologies, the Chinese telecommunications giant, has taken legal action against the Spanish government’s recent regulations, potentially excluding the company from receiving state aid in the development of 5G networks. Spain had committed a substantial sum of over €500 million ($527 million) to enhance rural 5G infrastructure. However, the government specified that suppliers deemed “high risk” would be barred from this aid.
Huawei’s Spanish unit swiftly filed an administrative appeal, vehemently arguing that the exclusion of certain suppliers contradicts legal standards, is disproportionate, and is seemingly driven by political motives.
According to the contentious rules, critical components of 5G networks, such as equipment, components, and associated software, should not be sourced from suppliers labeled as “high risk” by Spain. Additionally, operators who have already deployed 5G technology might face equipment replacement if their supplier falls under the high-risk category. However, the Economy Ministry, responsible for formulating these rules, has yet to finalize the list of banned suppliers, leaving the telecom industry in suspense.
Huawei contends that the regulations impede operators’ freedom to choose suppliers based on objective criteria encompassing commercial, technical, and security requirements. Instead, the company claims the rules attempt to exclude certain suppliers based on what it perceives as arbitrary political criteria.
This legal challenge unfolds against the backdrop of the European Commission’s mounting pressure on member states to phase out Huawei and ZTE Corp. equipment from their advanced mobile networks. The EU, citing security concerns, prohibited the use of these vendors’ equipment in its internal systems, intensifying scrutiny on nations relying heavily on Chinese equipment, including Germany and Spain.
As of December 2022, a report by Strand Consult revealed that 38% of Spain’s 5G network was supplied by a Chinese vendor, underscoring the significant stakes involved. This legal battle in Spain closely follows Huawei’s appeal in Portugal against a decision made by the country’s cybersecurity council, which forbids operators from utilizing Huawei’s equipment in the construction of 5G mobile networks.
The outcome of these legal challenges could significantly influence the future landscape of 5G development in Europe, as governments grapple with balancing technological advancements with national security concerns. The telecom industry and stakeholders eagerly await further developments, poised on the edge of a pivotal decision that could reshape the trajectory of 5G networks in these nations.
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(via)
