Should the state pay compensation for the costs that TDC Net incurred when the company was ordered to replace equipment from the Chinese supplier Huawei in 2023? The Eastern High Court will decide on this issue in a lawsuit between TDC Net and the state.
The case begins on Friday and is expected to be heard over approximately nine court days. TDC does not want to comment on the case ahead of the lawsuit, but writes on its website that the company believes that this is an expropriation. Therefore, TDC wants compensation.
It was in April 2023 that the then Center for Cybersecurity (CFCS) decided that TDC Net should remove equipment from Huawei in its central transport network. The equipment must be removed by the end of 2026.
The decision was made based on the Telecommunications Security Act. It gives the authorities the opportunity to prohibit agreements between companies and suppliers if they are assessed to constitute a threat to state security.
If there is a case of expropriation, full compensation is provided according to the law. But there was no question of expropriation, the state assessed at the time, and TDC therefore did not receive compensation.
Allegedly demands approx. 200 million DKK in compensation
It has not been announced how much TDC wants the state to pay in compensation. In 2023, TDC estimated, according to the media outlet Finans, that it would cost a "small three-digit million" to replace the equipment.
Up until the start of the trial, the same media outlet learned from several sources that TDC is demanding around 200 million DKK in compensation from the state.
Danish Business has entered the case on TDC Net's side. The trade organization has chosen this because it believes that it is important for companies to clarify who will bear the costs in such cases.
This is stated by the Confederation of Danish Enterprise's head of digital infrastructure, Poul Noer, in a written comment.
- It is crucial for companies to have security for their investments. Here we believe that it is important to clarify the legal position of companies in relation to who will bear the costs that may arise from the state banning the use of telecommunications equipment that it has previously approved, he says.
/ritzau/
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