Huawei Challenges FCC Equipment Ban in Federal Court
Huawei files a lawsuit against the FCC to overturn a recent ban that prevents carriers from using federal funds to purchase its equipment, arguing the order violates the U.S. Constitution.
Huawei files a lawsuit against the Federal Communications Commission, asking the United States Court of Appeals for the Fifth Circuit to overturn a ban on using Universal Service Fund money to purchase its equipment. The $8.5 billion fund helps carriers, especially in rural areas, afford communications infrastructure. Huawei's legal team argues that the FCC oversteps its authority and violates the Constitution by labeling the company a national security threat without due process.
The company claims that FCC Chairman Ajit Pai and other commissioners fail to present actual evidence to prove Huawei poses a security risk, relying instead on the fact that Huawei is a Chinese company. Huawei states that the FCC ignores 21 rounds of detailed comments explaining how this order harms rural businesses. Small carriers currently rely on Huawei and ZTE equipment because it offers a dependable and cheap alternative to more expensive options from competitors like Nokia and Ericsson.
This legal action marks the second time this year that Huawei cites the Constitution in a lawsuit against the U.S. government, following a similar challenge to a federal agency product ban in March. The legal battle unfolds amid escalating trade tensions between the United States and China, with Huawei facing intensified federal actions that include placement on the Entity List and multiple criminal charges from the Department of Justice.