Huawei files lawsuit against FCC over its decision to ban rural carriers from tapping US funds to buy gear
- Huawei says FCC order is unlawful as it does not give Huawei required due process protections in labelling the company as a national security threat
- The challenge takes place as the trade and tech war between the US and China drags on
Huawei Technologies has mounted a challenge against the US Federal Communications Commission’s (FCC) decision on November 22 to ban carriers in rural America from tapping the Universal Service Fund (USF) to buy the Chinese telecom giant’s network equipment, adding to its legal battles with US authorities.
The Shenzhen-based company, which is mired in the middle of a widening tech war between the US and China as it seeks to take a lead in 5G networks globally, filed the lawsuit in the US Court of Appeals for the Fifth Circuit, saying the FCC’s order is unlawful as it does not give Huawei required due process protections in labelling the company as a national security threat.
“Banning a company like Huawei, just because we started in China – this does not solve cybersecurity challenges,” Huawei’s chief legal officer Song Liuping said at a press conference in Shenzhen on Thursday. “Huawei also submitted 21 rounds of detailed comments, explaining how the order will harm people and businesses in remote areas. The FCC ignored them all.”
Song said the FCC did not present “solid proof and evidence... [its decision was] purely based on speculation”, which could in turn damage Huawei’s reputation and lead to “more losses in business”.
Huawei’s latest legal challenge opens a new front in its battle with US authorities. It is also challenging an earlier ban on federal agencies buying its gear on the grounds that this is unconstitutional, it remains stuck on the US Entity List which bans it from buying US-origin technologies, and founder Ren Zhengfei’s daughter Meng Wanzhou is battling banking fraud charges in Canada where she is under house arrest.
Huawei also believes that the FCC has failed to substantiate its arbitrary findings with evidence or sound reasoning or analysis, in violation of the US Constitution, the Administrative Procedure Act, and other laws, according to a press release issued on Thursday.
