Feb. 18 (UPI) -- A federal judge on Tuesday dismissed a lawsuit by Chinese electronics company Huawei arguing that a 2018 law banning U.S. federal employees from purchasing its products is unconstitutional.
Judge Amos Mazzant of the U.S. District Court in the Eastern District of Texas ruled that Congress has the ability to bar federal agencies from purchasing the company's products as outlined in the 2019 National Defense Authorization Act.
Additionally, the court determined that Congress did not prevent Huawei from doing business in the United States, but instead was exercising its power to control the use of federal funds.
"Contracting with the federal government is a privilege, not a constitutionally guaranteed right -- at least not as far as the court is aware," he wrote.
In February 2018, U.S. intelligence officials advised Americans against using cellphones by Huawei and ZTE, another Chinese telecom company, warning that they may pose security risks, including allowing spying by the Chinese government.
In May of the same year, the Pentagon announced it would ban the sale of all smartphones made by Huawei and ZTE from all U.S. military bases worldwide.
The 2019 National Defense Authorization Act then included a provision that prevented federal agencies and contractors from buying certain products from the companies.
Huawei has repeatedly denied any risks and in the lawsuit said the ban is based on "numerous false, unproven and untested propositions" and that the U.S. government failed to provide evidence Huawei products pose a security risk.
The company said on Tuesday that it will seek further legal action.
"Huawei is disappointed in Today's ruling and while we understand the paramount significance of national security, the approach taken by the U.S. Government in the 2019 NDAA provides a false sense of protection while undermining Huawei's constitutional rights," a representative said.