Chinese security firm Nuctech loses appeal against EU inspection

BRUSSELS (Reuters) - Chinese security firm Nuctech said Europe's top court had rejected its appeal to suspend a decision by the European Commission to inspect the company.

Nuctech had taken its appeal to the Luxembourg-based European Court of Justice, which is the EU's highest court.

"It is with disappointment but respect that we acknowledge the European Court of Justice's decision to reject Nuctech's request for the suspension of the European Commission's inspection decision of the company," it said in a statement.

The company had some of its offices raided by EU competition regulators in 2024, as the European Commission launched investigations to assess whether subsidies allowed certain Chinese companies to submit overly advantageous offers in procurement tenders to edge out EU rivals.

"We reiterate that Nuctech has neither received unlawful subsidies nor engaged in practices that distort the EU internal market. We will continue to engage with the relevant authorities to clarify our position and uphold our commitment to fair competition and regulatory compliance on the EU internal market," added Nuctech.

Nuctech makes body and luggage scanners for airports and ports in more than 170 countries and it was among Chinese tech companies blacklisted by the U.S. government in 2020, which had said that those companies were security threats.

(Reporting by Foo Yun Chee; Editing by Sudip Kar-Gupta)