Stockholm Administrative Court on Tuesday maintained a ban on the sale of 5G equipment against Chinese telecom giant Huawei Technologies. Sweden’s telecommunications regulator, the Post and Telecom Authority (PTS), banned the company and its Chinese counterpart, Zhongxing Telecommunication Equipment Corporation (ZTE), in October last year. citing security concerns raised by the Swedish intelligence services.
PTS had also formulated two conditions for the candidates for its spectrum auctions in the 3.5 GHz and 2.3 GHz bands, which are at the heart of the development of the country’s 5G network. PTS’s terms required that new installations could not be performed with Huawei products and that a phase-out of Huawei products from existing infrastructure be completed by January 1, 2025.
Huawei appealed the PTS decision to the Stockholm Administrative Court in November and argued that the arbitrary conditions for providers of 5G network operators should be removed. The Stockholm court granted Huawei a partial injunction over the PTS decision because of the ban’s potential to cause significant financial and goodwill damage. PTS had appealed against this judgment before the Court of Appeal which revoked the injunction and considered that the regulator can continue to apply its conditions for the extension of the 5G network despite the ongoing judicial review before the Stockholm Administrative Court.
Now that the Stockholm court has delivered its verdict, the telecoms giant still has the option of appealing to the court of appeal. However, with other countries With France, Germany, the UK and Italy increasingly limiting its participation in their 5G deployments, the company appears to have several battles to accomplish before it can establish itself in the European market.