According to a federal appeal court, the Federal Communications Commission (FCC) has the authority to ban the use of subsidies for equipment deemed a national security risk, reported the South China Morning Post.
The 5th Circuit Court of Appeals dismissed a request by Huawei to remove a rule used to ban rural phone carriers on national security grounds from purchasing its equipment using government money.
The court also dissolved the claim that the FCC lacked the expertise to label Huawei’s technologies as a security risk to US telecommunications infrastructure.