Belgian authorities arrested several people on Thursday following searches at 21 spots across Belgium and Portugal. The probe targets alleged bribery within the European Parliament linked to Chinese tech behemoth Huawei.
Officials believe the wrongdoing began in 2021 and went on until now.
The corruption took many forms. Investigators found kickbacks for helpful political stances, lavish gifts, food, travel costs, and even football match tickets. Belgian prosecutors think these payoffs were craftily hidden as conference costs.
As a first step, the European Parliament banned all Huawei lobbyists from its buildings on Friday.
The nine registered Huawei representatives can no longer walk the halls of EU power. The tech firm claims they have “zero tolerance” for wrongdoing.
Tech Firms Wield State-Like Power in Brussels
The news lifts the lid on how tech giants now hold sway much like countries do. Huawei’s lobbying push makes old-fashioned state sway seem quaint by comparison. The firm’s reach stretches through the halls of EU lawmaking, with links to countless officials.
"We had huge pressure to reach out to lawmakers," one former Huawei lobbyist told POLITICO.
The stakes were high for the tech giant, which seeks to mold rules that could make or break its market access.
Two offices in the Parliament have been sealed. One belongs to Adam Mouchtar, a long-time official now working for newly elected MEP Nikola Minchev. Mouchtar denied any wrongdoing when asked. The other sealed office had links to Italian MEPs.
Investigators have about 15 former and current MEPs “on the radar,” according to a joint report by Follow The Money, Le Soir, and Knack.
Huawei’s Fight: European Market Access
What does Huawei want from the EU?
At its core, the firm seeks to keep its spot in Europe’s 5G networks. Since 2019, the U.S. has cut Huawei off from global tech supply chains and warned allies about using its gear.
The EU branded Huawei a “higher risk” than other 5G suppliers in 2023. This drove the firm to ramp up its lobbying. It had one goal: create laws that might block or allow its products across the EU’s 27 states.
The Chinese tech giant once held great sway in Brussels. But its clout waned in recent years as fears grew about its ties to Beijing. This may help explain why some in the firm felt encouraged to cross lines.
Echoes of Past Parliament Scandals Run Deep
The EU Parliament still reels from its last big scandal less than three years ago.
In late 2022, the “Qatargate” affair shook the body when lawmakers were caught up in a bribery plot.
Five current and former MEPs were charged in that case. Greek lawmaker Eva Kaili stood at its centre, along with colleagues from Italy and Belgium. One, Pier Antonio Panzeri, cut a deal with prosecutors and owned up to his role.
The Huawei case brings to mind these past troubles. Manon Aubry, co-chair of The Left group, called the claims “extremely serious” and said they “again expose the failures of European institutions.”
A New World Where Tech Firms Match States
What sets this case apart is how it shows tech companies now rival countries in their lobbying might.
Belgian intelligence has been eyeing Huawei’s Brussels team, checking if they help China’s goals in Europe.
The firm’s reach touches areas once thought to be the realm of state actors. With a staff of 180,000 and vast wealth, Huawei can throw money at problems in ways that stack up to what countries do.
German MEP Daniel Freund pushed for tough steps: “If in doubt, Huawei should be banned from the premises for the duration of the probe. We must finally stop treating such incidents as minor offenses. Corruption must be punished harshly.”
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