The CFCS had ordered TDC NET to remove Huawei from its central transport network by 2027
On 24 June 2026, Denmark’s Eastern High Court ruled that TDC NET was owed compensation for the forced removal of Huawei equipment from its network. Following the Telecommunications Security Act 2021, which allowed the Centre for Cyber Security (CFCS) to impose high-risk vendor restrictions, the regulator ordered TDC NET to phase out Huawei equipment from its central transport (Dense Wavelength Division Multiplexing, or DWDM) network by 1 January 2027. The CFCS did not target any other operators with removal orders, primarily because they were not as reliant on Huawei equipment as TDC NET. Although TDC NET stated it would comply with the regulator’s decision, it considered that the CFCS had not pointed to any concrete threat or given any example of where security had been compromised. As a result, the operator appealed to the High Court, arguing that the decision was illegal and that it should be granted full compensation for the rip-and-replace process, requesting DKK195m (£22.3m).
The court ruled that, while the ban was still lawful, TDC NET was owed compensation
The High Court found that Section 3 of the act gave the CFCS the authority to impose the ban and that the decision had been made after an overall security assessment. Therefore, the removal mandate was found to be lawful. However, the court emphasised that TDC NET had built its DWDM network based on Huawei equipment since 2011 in good faith, with the ban requiring a total replacement of this network. Additionally, it noted that the ban was specifically directed at TDC NET and went beyond the scope of typical telecoms regulation. As a result, the court ruled that, although the ban was not unlawful, it did constitute ‘expropriation’ and therefore ordered full compensation for the replacement of equipment. While TDC NET initially requested DKK195m (£22.3m), the court argued that this calculation was not reliable and estimated that the compensation should instead amount to DKK80m (£9.2m).
This is the first time a European operator has been awarded compensation for rip-and-replace measures
Various EU Member States have implemented some form of vendor restrictions, using the EC’s 5G Security Toolbox from 2020 as a framework. However, this is the first time an operator has been awarded compensation as a result of such restrictions. Neither of the other two legal challenges to rip-and-replace measures that have been resolved so far have resulted in operators being awarded compensation. In the Netherlands, the court ruled that damages fell below the applicable threshold for compensation, while in France, the Government extended the deadlines for rip-and-replace measures in exchange for operators dropping their joint suit. Nevertheless, the High Court decision in Denmark could set a precedent, potentially influencing the outcome of similar ongoing and future cases. In March 2026, the Advocate General of the Court of Justice of the European Union (CJEU) published an opinion on Elisa’s legal challenge against the Estonian Government’s Huawei restrictions, stating that while Member States may exclude telecoms equipment on the basis of a national security risk, operators could be entitled to compensation if this entails a disproportionate burden. This is not binding and while the CJEU often aligns with opinions of Advocate Generals in its rulings, a final decision on Elisa’s case is not expected until Q4 2026.
