Huawei starts a case with the arbitration chamber that is part of the World Bank. The Chinese company would demand compensation of at least half a billion euros for the previous Swedish ban on Huawei’s 5G equipment.
The Swedish public broadcaster SVT reports that compensation amounts to at least 496 million euros, but that could rise to 2.4 to 2.8 billion euros. This is a dispute that is pending at the International Center for Settlement of Investment Disputes, part of the World Bank. Huawei itself has not mentioned any amounts.
An expert in trade disputes, Rikard Allvin, explains to SVT that Huawei is on the one hand trying to get compensation for the alleged damage in this file, but that there is also a strategic aspect to it on the other. By suing Sweden in this way with such high damages, Huawei could discourage other countries from doing the same when asked whether or not they should bar Huawei from building a 5G network. Allvin states that it is difficult to say how big the chances are for Huawei, because there is no case law on the subject yet.
Huawei provided the following justification for this move in a statement to AFP: “The decision by the Swedish authorities to discriminate against and exclude Huawei from the 5G rollout has significantly damaged Huawei’s investment in Sweden.” According to Huawei, this is in violation of Sweden’s international obligations. The company believes that Sweden has taken several measures directly targeting Huawei’s investments in Sweden, barring Huawei from deploying 5G network products and services.
Huawei’s objections stem from a 2020 Swedish decision that carriers wishing to offer 5G in Sweden will no longer be allowed to use Huawei or ZTE equipment for their core network. That decision stood last year in a lawsuit that Huawei already conducted in Sweden. Companies that still use Huawei or ZTE equipment for the core network must have replaced it by 2025.