Huawei isn’t having much luck in U.S. courts.
Earlier today, a U.S. judge rejected a suit filed by Huawei that challenged the legality of banning federal agencies from buying its products.
Huawei “argued that part of the National Defense Authorization Act (NDAA) infringed on the company’s constitutional rights and harmed its existing and future business,” reported ABC.
But a U.S. court ruled the ban is not punitive, and that the federal government can take its business elsewhere. In fact, U.S. District Judge Amos Mazzant said Congress has the right to restrict federal agencies from doing business with Huawei and ZTE altogether.
Judge Rules Huawei Arguments are “Unpersuasive”
The judge also found Huawei arguments to be “unpersuasive” and that, “Contracting with the federal government is a privilege, not a constitutionally guaranteed right.” The court also noted Huawei is not prevented from participating in its line of work. In addition, Huawei “can still conduct business with every other company and individual in America as well as the remaining 169 countries and regions it currently does business with throughout the world.”
Part of the reason for the move to cut off Huawei is the Trump Administration.
In fact, it’s been argued that installing Huawei’s equipment in U.S. networks could allow China to spy on sensitive communications. Huawei denies those allegations and says none of its products pose a security risk to the U.S.
Obviously, the company is not pleased with the outcome, pledge to consider other options.”While we understand the paramount significance of national security, the approach taken by the US 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,” Huawei said.