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How Huawei may be responsible for Spain's cancellation of contracts with one of the biggest European telecom companies

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The Spanish government has cancelled a fibre-optic service contract with Telefonica. According to a report by the news agency Reuters, Spain’s Digital Transformation Ministry stated that it has cancelled this agreement with one of the largest telecom companies in Europe due to the use of equipment made by the Chinese tech giant Huawei . The report claims that this move comes amid concerns in Europe that such gear may pose a security risk. Citing Spanish newspaper El País, the report contended that under the 10 million euro ($11.7 million) contract, Telefónica was tasked with providing fibre-optic connections to several government bodies, including the Defence Ministry.

In an email statement to Reuters, the Spanish ministry didn’t provide any specific details. It said: “We confirm the cancellation of the contract for reasons of digital strategy and strategic autonomy.”


What Telefonica said about using Huawei-made devices


In a statement to Reuters last month, Emilio Gayo, Telefonica's Chief Operating Officer, said the company was “reducing its exposure to Huawei” in Spain to align with EU guidance for telecom operators to phase out Huawei-made equipment due to security concerns.

Unlike countries such as Germany that have imposed full bans on Huawei equipment, Spain has yet to do the same. The report also mentions that the company is retaining some gear from the Chinese manufacturer for its retail 5G mobile network.

Earlier this year, Belgian prosecutors arrested several people in a corruption probe linked to the European Parliament and Huawei, Deutsche Welle reported.

Suspects were accused of forgery, bribery, and accepting payments or gifts, including travel and football tickets, in exchange for advancing Huawei’s interests since 2021.

Police conducted 21 raids across Belgium and Portugal, though no EU lawmakers were detained. The lobbyists and a former Huawei public affairs director are reportedly central to the case. At that time, Huawei said it had “zero tolerance” for corruption.



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