Huawei files lawsuit against US FCC over carrier rules

Huawei is reportedly filing a lawsuit against the US FCC over new rules. Due to the rules, providers should no longer receive subsidies for the purchase of Huawei equipment. Huawei disagrees.

The new rules, still a proposal, prescribe that providers may no longer receive subsidies for equipment from Huawei and ZTE, reports The Wall Street Journal. With the lawsuit, Huawei wants to test the new measures against legislation, with the aim that the FCC must eventually reverse them. It is unknown to which court and on what grounds Huawei will file the charges.

The FCC proposed the rules last week. Both companies would pose a threat to national security in the United States, the government says. There will also be a proposal that providers should remove existing equipment from the network. This mainly concerns smaller providers in rural areas. Thanks to the cheaper equipment from Huawei, they can set up a network for relatively little cost.

The rules are part of a larger offensive by the United States in the trade war with China. Earlier this year, it imposed a trade ban on US companies with Huawei. Licenses have now been issued for the resumption of that trade. Microsoft is allowed to trade with Huawei again, but not yet Google, for example. As a result, laptops with Windows can probably be released again, but not Android smartphones with Google services.

Huawei would like to announce the move to court next week at its own headquarters. WSJ is relying on anonymous sources and Huawei has not confirmed it. Huawei previously filed a lawsuit against the US government over the 2019 National Defense Authorization Act.