The Chinese tech giant Huawei is planning to sue the U.S. government over a Federal Communications Commission (FCC) order, the company said Wednesday.
The FCC barred Huawei from a federal subsidies program last month due to the Trump administration’s security concerns about the company’s connections to the Chinese government. This will probably make its products more expensive for U.S telecom carriers, NBC News noted.
Huawei denies it is a security risk and is arguing that this removal violates its right to due process and says the move is based on arbitrary evidence. The company said the FCC “ignored” Huawei comments on the negative effects of the order on access in remote areas.
The FCC order rose from “unsound, unreliable, and inadmissible accusations and innuendo, not evidence,” said Glen Nager, a U.S. lawyer who represents Huawei, in a statement obtained by The Hill. “The designation is simply shameful prejudgment of the worst kind.”
FCC Chairman Ajit Pai said last month after the order was ruled that FBI Director Christopher Wray and Attorney General William Barr recommended the move.
The case would head to a federal appeals court in New Orleans.
The Trump administration placed the company on a blacklist in May, preventing U.S. firms from conducting business with Huawei unless they obtain a specific license.
Huawei is also pursuing a lawsuit in Texas, arguing against a new law that bars U.S. agencies from purchasing its products. The U.S. has also filed criminal charges against the company and its chief financial officer for theft of trade secrets, bank fraud and violating U.S. sanctions against Iran.
The Hill has reached out to the FCC for comment.
Huawei is a top manufacturer of telecom tech, and the tension between the company and the U.S. comes at a time that many areas are looking to advance to 5G service to handle increased internet traffic.
–Updated at 9:54 a.m.