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A Swedish appeals court on Wednesday upheld a lower court ruling that banned Huawei from selling 5G equipment in the country, the latest setback for the Chinese telecoms company's comeback.
In 2020, Swedish telecoms regulator PTS unexpectedly banned Huawei from supplying 5G equipment to Swedish mobile companies, citing security concerns raised by the Swedish Security Service. Huawei company challenged the decision in court.
Last year, a lower Swedish court confirmed the decision.
The issue emerged after the United States claimed that China could use Huawei equipment for espionage, and European governments followed suit by tightening controls on Chinese-built 5G networks. Huawei denies that it poses a national security risk.
The Swedish government has given all telecommunications companies in Sweden until January 1, 2025 to remove equipment made by Huawei and Chinese rival ZTE from existing infrastructure and core functions.
Stockholm's Court of Appeal said in a statement after Wednesday's decision that Sweden's national security could be at risk if Huawei's products were used for core functions of 5G networks, agreeing that the regulator's initial ban was based on "truth" , current and sufficiently serious threat” for Sweden’s national security.
Huawei Sweden said in a statement on Wednesday that it was disappointed with the Stockholm Administrative Appeals Court's ruling.
Huawei wrote: "We will analyze the ruling and evaluate our next steps, including under Swedish law and the EU Other legal remedies provided by law to continue to safeguard our legitimate rights and interests. "
Sweden's dispute with Huawei has also caused Ericsson to face difficulties in China.
The proportion of Ericsson's revenue from China has dropped from 10-11% to about 3%, and Ericsson has been forced to reduce its business in one of its largest markets.
Global telecom operators currently using Ericsson 5G equipment, covering a total of 55 countries and regions around the world:
