In the never-ending Huawei saga, the Chinese company has decided to file a lawsuit in the Eastern District of Texas against the U.S. government for the latter's ban on the sale of equipment or services to government entities. Huawei asserts that said ban is unconstitutional.
The suit itself is in regards to Section 889 of the National Defense Authorization Act (NDAA), which, among other things, mandates that the U.S. government cannot use federal/grant funds or loans to purchase or otherwise obtain "covered telecommunications equipment or services." Huawei is included in that.
All of this allegedly stems from national security concerns due to Huawei's country of origin and possible connection to China's government. The worry is that the company could be compelled to use its telecommunications equipment to spy on the U.S. Up to this point, Huawei has pointed out, no evidence has surfaced to back up these claims.
Assuming the case proceeds, we won't know how this turns out for quite some time. Odds are a decision either way will be appealed and this could get lengthy and messy.
According to Politico, Huawei's lawsuit has been rejected. District Judge Amos Mazzant has decided that Congress was allowed to pass the National Defense Authorization Act, and it was also within its right to prohibit firms from buying Huawei and ZTE equipment specifically.
The judge based his decision on a similar lawsuit filed by Russian security specialist Kaspersky. Here, it was similarly ruled that the company couldn't sue Congress for its decision to forbid federal agencies to use its products.
In a statement, Huawei made clear it's considering further legal options.