Appeals Court Upholds FCC Subsidy Ban for Huawei Purchases

Appeals Court Upholds FCC Subsidy Ban for Huawei Purchases
A Huawei logo is seen on a cell phone screen in their store at Vina del Mar, Chile, on July 18, 2019. Rodrigo Garrido/Reuters
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NEW ORLEANS—A federal appeals court refused Friday to hear Chinese tech giant Huawei’s request to throw out a rule used to bar rural phone carriers on national security grounds from using government funds to purchase its equipment.

The 5th Circuit Court of Appeals ruled that the Federal Communications Commission (FCC) was fully within its power and competence to issue the rule barring “Universal Service Fund” subsidies recipients from buying equipment or services from companies deemed national security risks.