A federal judge in Texas Tuesday rejected Chinese telecom gear maker Huawei Technologies’s constitutional challenge to a U.S. regulation that restricted its ability to do enterprise with federal agencies and their contractors.
In a 57-page decision, U.S. District Judge Amos Mazzant ordered in favor of the U.S., concluding that Congress acted within its powers by including the restriction in the National Defense Authorization Act (NDAA), which targeted Chinese firm ZTE.
The decision comes as the U.S. has a wide-ranging effort underway to stop Huawei technology from being employed in sensitive telecom equipment in the U.S. or elsewhere.
Huawei lodged the suit last March, saying a law limiting its U.S. business was unconstitutional.
Huawei had challenged Section 889 of the NDAA, signed into law by U.S. President Trump, which blocks federal agencies from using its gear and services.
Among its many arguments, Huawei contended that the NDAA was overbroad in restricting its sales and violated due process.
Judge Mazzant of the U.S. District Court for the Eastern District of Texas disagreed on each count, saying that the NDAA was “appropriately tailor-made to the burdens slapped” and said he was unpersuaded that the law impairs Huawei’s existing and future contracts.
While Huawei had a tiny share of the U.S. market before the bill, it’s the world’s largest telecoms gear manufacturer and is seeking to be at the forefront of a world rollout of 5G mobile networks and services.