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Judge Rejects Huawei Lawsuit Against US Law Restricting Its Business

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A US federal judge has rejected a lawsuit filed by Huawei Technologies Co Ltd’s challenging the constitutionality of a law that banned federal agencies’ ability to do business with federal agencies and their contractors.

 

In a 57-page decision, US District Judge Amos Mazzant ruled in favor of the United States. The ruling says that Congress acted within its powers to restrict federal agencies from doing business with Huawei and ZTE.

 

Huawei argued that part of the National Defense Authorization Act (NDAA) infringes on its constitutional rights and harms its existing and future business. The Chinese company had also argued that the NDAA was overbroad in restricting its sales and was violating due process.

 

Huawei Lawsuit
Huawei Technologies office in the Hague, Netherlands Photo: Glassdoor

 

Judge Mazzant disagreed, saying that the NDAA was “appropriately tailored to the burdens imposed”. He also said he was unpersuaded that the law impairs Huawei’s existing and future contracts.

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A Huawei spokesman expressed the companies disappointment in the Judge’s ruling on the lawsuit.

 

“While we understand the paramount significance of national security, the approach taken by the U.S. Government in the 2019 NDAA provides a false sense of protection while undermining Huawei’s constitutional rights. We will continue to consider further legal options,” the spokesman said.

The United States to block Huawei’s chip shipments

This ruling comes as the United States blocks firms from including Huawei’s technology in sensitive telecommunications equipment. The Trump administration has also asked its allies to do the same.

 

Britain, however, plans to use Huawei’s equipment in building its 5G network in a move that has disappointed the US.

 

Huawei is the world’s biggest telecoms gear maker. It is also attempting to be at the forefront of a global rollout of 5G mobile networks and services.

 

In addition to the Law, the Trump administration is also considering changing U.S. regulations to allow it to block shipments of chips to Huawei from companies such as Taiwan’s TSMC, the world’s largest contract chipmaker, according to rumours.

 

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