A Danish court has mandated the government to pay 80 million kroner (approximately US$12 million) to TDC NET, Denmark’s largest digital infrastructure operator, following a 2023 directive to remove Huawei equipment from its fibre-optic network, citing constitutional protections against expropriation.
- Court awards TDC NET 80 million kroner in compensation
- 2023 government order required Huawei gear removal citing security risks
- TDC NET’s claim partly upheld despite legality of government ban
What happened
In 2023, Denmark’s Centre for Cybersecurity ordered TDC NET to remove Huawei equipment from its dense wavelength-division multiplexing (DWDM) fibre network, which expands network capacity. This directive came under a telecommunications security law enacted in 2021 designed to mitigate national security risks associated with foreign technology providers.
The Eastern High Court in Copenhagen ruled that this order constituted an expropriatory intervention under the Danish Constitution, as the ban forced TDC NET to completely replace an extensive infrastructure network built in good faith since 2011 with Huawei equipment. The court awarded 80 million kroner in compensation, rejecting part of TDC NET’s higher claim but confirming the government must compensate the firm.
Why it matters
This case exemplifies the delicate balance governments face when enforcing national security measures that impact critical telecommunications infrastructure. While Denmark has the authority to impose bans on equipment viewed as security threats, this ruling emphasizes that affected companies are entitled to fair compensation for extensive forced changes.
It also underscores the legal risk and financial consequences countries might encounter when retroactively restricting technology partnerships, especially when providers have longstanding contracts. For telecom operators, it highlights the vulnerability of infrastructure investments connected to controversial suppliers amid shifting geopolitical dynamics.
What to watch next
The Danish state may appeal the decision to the Supreme Court, potentially setting a precedent for how far governments can go in restricting foreign technology under security laws and how compensation obligations are determined. Authorities will also closely evaluate the financial and operational impact of such bans on digital infrastructure providers.
TDC NET’s ongoing response, including an upcoming media interview by its CEO, will be monitored for insights on how the company plans to manage the network transition and any further legal actions. The case could influence similar disputes in other countries grappling with Huawei-related security concerns.