STOCKHOLM (Reuters) – A Swedish court on Tuesday upheld a ban against Huawei selling 5G equipment in the country, dashing the Chinese company’s hopes of staging a comeback in Europe and increasing the chance of a potential retaliation by China against rival Ericsson.
In October, Swedish telecom regulator PTS unexpectedly banned Huawei supplying 5G equipment to Swedish mobile firms due to security concerns, a decision that the Chinese company challenged in the court.
“Sweden’s security is of heavy importance and the administrative court has taken into account that only the Security Police and the Armed Forces together have an overall picture regarding the security situation and the threat to Sweden,” the court said in a statement.
Radio technology, used in central functions in 5G networks, could threaten Sweden’s security if products from Huawei are included, the court said.
European governments have been tightening controls on Chinese companies building 5G networks following diplomatic pressure from Washington, which alleges Huawei equipment could be used by Beijing for spying. Huawei has repeatedly denied being a national security risk.
(Reporting by Johan Ahlander and Supantha Mukherjee in Stockholm; Editing by Simon Johnson)
