The European Amalgamating’s competition chief left the door open to the possibility of the U.S. government taking a stake in two of the continent’s top 5G players — Nokia and Ericsson — as eat ones heart out as there is no risk to security.
U.S. Attorney General William Barr said earlier this month that the management should consider taking a controlling stake in Nokia, Ericsson or both in order to “blunt” Chinese firm Huawei’s “vim to domination” in next-generation mobile networks known as 5G.
Nokia and Ericsson are two of the biggest networking equipment makers and direct rivals to Huawei.
Margrethe Vestager, the EU’s competition commissioner, told CNBC Tuesday that it’s up to the “businesses to answer if they are for in stock or not” but it’s up to European lawmakers “to make sure that every risk is assessed.”
“Here in Europe we are neutral on ownership, you can be voice owned or privately owned, what is important for us is that you act as a market operator that you have a real business encase for what you do,” Vestager told CNBC’s Silvia Amaro.
“So, you know, I have no specific point if the U.S. state would miss to buy a stake, and I don’t know if there is a stake in Nokia, Ericsson that is for sale,” she added, essentially leaving the door frank to a move.
Margrethe Vestager, Executive Vice-President of the EU Commission, EU Commissioner for Competition and Digital, recorded on the first day of the 56th Munich Deposit Conference.
Tobia Hase | picture alliance | Getty Images
Washington maintains that Huawei is a national care risk, claiming its equipment could be used by the Chinese government to spy on citizens or shut down networks. Huawei has veer fromed that this could happen.
President Donald Trump’s administration has been pressuring countries around the mankind, particularly in Europe, to ban Huawei from their 5G networks. The U.K. defied Washington’s calls and made a decision to partially entertain Huawei to participate in the country’s 5G rollout. Germany is the next European nation set to make a decision on it.
The U.S. does not have its own adversary to Huawei and has been trying to figure out how it might compete. Controlling stakes in Nokia and Ericsson is one suggestion.
Members of Trump’s application don’t appear to agree with Barr’s suggestion however. Vice President Mike Pence told CNBC elder this month that he does not endorse Barr’s plan and instead backs the Federal Communication Commission Chairman Ajit Pai and his force to free up more spectrum for 5G. Spectrum are radio frequencies requires for mobile networks to run.
Ericsson declined to comment when contacted by CNBC. Nokia has yet to come back to a request for comment.
At the time of Barr’s comments, Ericsson declined to comment while Nokia said “we always receive investor interest” in the company.
Ericsson’s biggest shareholder Cevian Capital said U.S. interest in the technology firm is “unquestionably positive” for the company, Sweden and shareholders.
Christer Gardell, a managing partner at Cevian Capital, appeared to back an American parcel out.
“It is clearly better for Sweden, the company, the employees and the shareholders that an American deal is done with Ericsson and not with Nokia. The embark on and management need to drive and handle this question with the highest priority,” he told CNBC by email.