Germany to tighten scrutiny of telecoms network vendors: sources

BERLIN (Reuters) – The German government has agreed in principle to tougher oversight of telecoms network vendors that, while stopping short of a ban on Huawei, will make it harder for the Chinese company to keep a foothold in Europe’s largest market.

Coalition and government sources said on Wednesday that scrutiny of a vendor’s governance and technology would be extended to the Radio Access Networks (RAN) powering next-generation 5G services, in addition to the more sensitive core.

The sources confirmed a report in the Handelsblatt daily which said that, after two years of wrangling, Chancellor Angela Merkel’s coalition had agreed on a formula for how to handle so-called high-risk vendors in a proposed IT security law.

The compromise still needs to be drafted into a legal text, which Merkel’s cabinet is now expected to review in November, Handelsblatt reported, without naming its sources.

European governments have been shifting their position

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