Huawei is suing Sweden after a 5G ban
STOCKHOLM, 30 January 2022 (AFP) – Huawei said on Sunday that they have initiated arbitration proceedings against Sweden under the World Bank Group after the Nordic country banned the Chinese technology giant from launching its 5G products.
“The Swedish authorities’ decision to discriminate against Huawei and exclude it from the expansion of 5G has significantly damaged Huawei’s investment in Sweden, in violation of Sweden’s international commitments,” the Chinese company said in a statement to AFP.
The company had therefore “initiated arbitration proceedings” under the World Bank’s International Center for the Settlement of Investment Disputes (ICSID) “against the Kingdom of Sweden following a number of measures taken by the Swedish authorities directly against Huawei’s investments in Sweden and excluding Huawei from the development of 5G network products and – services in the country, ”added Huawei.
Huawei did not specify what damages were requested, but according to public broadcaster SVT, the initial amount requested was 5.2 billion Swedish kronor (550 million dollars, 495 million euros), but it could end up being much higher.
After the United Kingdom in mid-2020, Sweden became the second country in Europe and the first in the EU to explicitly ban network operators from using Huawei equipment in the construction of the infrastructure needed to operate their 5G networks.
Sweden also ordered Huawei to remove already installed equipment by 1 January 2025.
Following an appeal from Huawei, a Swedish court in June 2021 upheld the decision of the Swedish Post and Telecom Agency.
The decision strained relations between Sweden and China, where Beijing then warned that PTS’s decision could have “consequences” for the Scandinavian country’s companies in China, which makes the Swedish telecom giant and Huawei competitor Ericsson fear reprisals.