A Danish court has ruled that telecom operator TDC Net is entitled to compensation after being ordered to remove Huawei equipment from parts of its network, a decision that could draw attention from companies operating critical digital and crypto-related infrastructure.
TDC har delvist vundet sag mod Forsvarsministeriet, som pålagde koncernen at fjerne udstyr fra kinesiske Huawei.
TDC skal have 80 millioner kroner i erstatning, lyder dommen.
Og det var ikke i strid med loven, at myndighederne krævede udstyret fjernet.https://t.co/xvLsQckzw1 pic.twitter.com/9aIJavsGUd
— Berlingske (@berlingske) June 24, 2026
The Eastern High Court found that the government’s order amounted to expropriation, meaning TDC should be compensated for losses resulting from the forced removal. However, the court also concluded that the authorities acted within the law when issuing the order.
TDC had sought 195 million Danish kroner ($28 million) in compensation, but the court awarded 80 million kroner ($11.5 million), citing uncertainty in the company’s loss calculations.
Why does the ruling matter for digital infrastructure?
The case stems from a 2023 order issued by Denmark’s Center for Cybersecurity (CFCS), which required TDC to remove Huawei equipment from a central telecommunications network.
The order was made under Denmark’s Telecommunications Security Act, introduced in 2021. The legislation allows authorities to block agreements with suppliers if they are considered a threat to national security.
While the dispute centered on telecom infrastructure, the ruling could be closely watched by operators of data centers, blockchain networks, crypto service providers, and other firms that rely on critical digital infrastructure. It highlights how governments can intervene on security grounds while still being required to compensate affected businesses.
Court upholds government’s security powers
During the trial, TDC argued that the order was unlawful and sought compensation for the costs of replacing Huawei equipment.
The state rejected those claims, arguing that the company had continued its relationship with Huawei despite growing security concerns surrounding the Chinese technology giant.
The High Court ultimately sided with the government on the legality of the order, confirming that Danish authorities had the right to act under national security laws.
What happens next?
TDC welcomed the court’s recognition that the order constituted expropriation, saying the ruling provides greater clarity on compensation and legal certainty for operators of critical infrastructure.
The company said it will review the judgment before deciding whether to appeal to Denmark’s Supreme Court. The government also has the option to challenge the ruling.
The case comes after years of international scrutiny of Huawei, which has repeatedly denied allegations by Western governments that its technology could be used for espionage on behalf of the Chinese state. Last year, the U.S. placed Sophgo Technologies, an AI chip company founded by Bitmain co-founder Zhan Ketuan, on its blacklist due to concerns that its chips may be used in Huawei products to circumvent sanctions.
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