EU Can Exclude Chinese Tech Without Payout, Says Advocate-General
The CJEU's Advocate-General ruled EU can exclude Huawei without compensation.
Why it matters: Telecom firms like Elisa Eesti AS could face costly infrastructure changes, impacting investments across EU nations prioritizing security over Chinese technology reliance.
- Advocate General's opinion issued March 19, 2026, in Case C-354/24.
- EU can exclude firms like Huawei if justified by security reasons.
- Elisa must phase out Huawei by 2025 for 5G in Estonia.
- Potential costs for Elisa could reach €500 million.
The CJEU's Advocate General Tamara Ćapeta issued an opinion on March 19, 2026, confirming that EU countries can exclude Chinese technology firms like Huawei without financial compensation if justified by national security concerns. This opinion applies to all EU member states, emphasizing that exclusions must be proportional and legally justified.
This decision follows a legal case in Estonia where the government barred Elisa Eesti AS from using Huawei equipment in its telecom network. As a major provider with 37% market share in Estonia, Elisa is required to phase out Huawei technology by 2025 for 5G services and by 2029 for 4G, which could cost the company up to €500 million.
While no compensation is mandated under current EU law if security objectives are clear, telecom companies across Europe must now contend with potential infrastructure overhauls to mitigate security risks. This move underscores a deliberate shift across Europe towards scrutinizing reliance on non-EU technology amidst global cybersecurity concerns.
By the numbers:
- €500 million — Estimated costs for Elisa's phase-out of Huawei tech by 2025.
- 37% — Market share of Elisa Eesti AS in Estonia.
What's next: The Advocate-General's opinion may influence upcoming EU regulatory measures on telecom security.