Portuguese telecoms operator Meo has filed a lawsuit against the Portuguese state seeking €81.7 million in compensation, following a government resolution that effectively barred Huawei equipment from the country's 5G networks. The case, lodged with the Lisbon Administrative Court on 24 April, targets the Public Prosecutor's Office and the State's Legal Centre, according to filings on the Citius legal portal reported by Público.
Meo, a subsidiary of Altice Portugal, argues that it suffered "special and abnormal damage" due to administrative decisions by the Security Assessment Commission, which operates under the Higher Council for Cyberspace Security. At the heart of the dispute is a resolution adopted in the first half of 2023, which flagged the "high risk" of using equipment from suppliers based outside the EU, NATO, or the OECD for national 5G network security. The resolution applied when a supplier's home country legal framework allowed its government to exert "control, interference or pressure" over the company's activities abroad.
Huawei at the Center of the Dispute
Although the resolution did not name any specific country or company, its primary target was Huawei, the Chinese telecom giant. Huawei technology had been widely used by Meo in building its 5G network, and the decision forced the operator to overhaul that part of its operations, as reported by business daily ECO. Huawei itself had already initiated administrative proceedings against the resolution in September 2023, and a Security Assessment Commission spokesperson later confirmed the case was following its judicial course.
The move has drawn criticism from across Portugal's telecom sector. In November 2023, Vodafone Portugal chief executive Luís Lopes told Expresso that the commission's measure was more "aggressive" than those applied elsewhere in the EU and therefore "not particularly well judged." NOS chief executive Miguel Almeida echoed that view at the 33rd Digital Business Congress of APDC in May 2024, stating the resolution "goes far beyond what has been the practice in Europe, in terms of the range of network components covered."
This legal battle underscores the broader European dilemma over Chinese telecom equipment. While some EU member states have moved to restrict Huawei from 5G networks due to security concerns, others have taken a more cautious approach, balancing national security with the need for competitive infrastructure. Portugal's resolution, by targeting all non-EU, NATO, or OECD suppliers, has been seen as particularly stringent, potentially affecting other vendors as well.
The case also highlights the financial stakes for telecom operators. Meo's claim of €81.7 million reflects the cost of replacing Huawei equipment and the disruption to its network rollout. Similar disputes have emerged in other European countries, where operators have sought compensation for being forced to switch suppliers. The outcome in Lisbon could set a precedent for how such claims are handled across the continent.
As the case proceeds, it will be closely watched by both the telecom industry and policymakers. The Portuguese government has not yet commented on the lawsuit, but the resolution remains in effect, shaping the country's 5G landscape. For now, Meo's legal action adds another layer of complexity to Europe's evolving relationship with Chinese technology, a topic that continues to stir debate in Brussels and national capitals alike.
