Appellate court rules that the FCC can block subsidized purchases of Huawei networking equipment because it is a national security threat in the U.S.
Huawei argued in its 61-page filing that the FCC, in blocking the use of subsidized funds to purchase Huawei’s 5G gear, was replacing the State Department or other such agencies in making a decision against using such funds to purchase Huawei manufactured equipment. Trump appointee U.S. Circuit Judge Stuart Kyle Duncan wrote, “If we were convinced that the FCC is here acting as ‘a sort of junior-varsity’ State Department, we would set the rule aside. But no such skullduggery is afoot. Assessing security risks to telecom networks falls in the FCC’s wheelhouse.”
As a result of the ban, Huawei says that the FCC’s ruling branded the company and drove away customers worried about using 5G technology opposed by the Trump administration. Additionally, the FCC’s determination about Huawei being a national security threat in the U.S. came after similar assessments about Huawei were made in the U.K., Japan, Australia and New Zealand.
The FCC said that it came to the conclusion that Huawei’s lower costs were outweighed by its threat to U.S. security. During oral arguments, the appellate judges pressured Huawei to reveal why it wouldn’t eliminate the rumored backdoors that reportedly allow the company to spy on American citizens and companies.
Honor’s latest models, the 50 and 50 Pro, use the Google Mobile Services version of Android including Google apps
Instead, we could see Huawei drop down to the seventh position this year especially after it ended up selling its Honor sub-brand to a consortium for a price believed to be in the neighborhood of more than $15 billion. Huawei did this in order to free up Honor from having to deal with the U.S. bans because of its connection to Huawei.