Altice is demanding €81.7 million from the Portuguese State

Altice is demanding €81.7 million from the Portuguese State

On April 24, 2026, MEO (the operator owned by Altice Portugal) filed an administrative action in the Tribunal Administrativo do Círculo de Lisboa, demanding €81.7 million from the Portuguese State. The reasoning behind this lawsuit revolves around two key factors:

1) In 2023, the Security Assessment Commission (part of the Superior Council for Cyberspace Security) issued a deliberation effectively excluding the use of equipment from high-risk, non-EU suppliers, heavily targeting the Chinese vendor Huawei.

2) MEO was highly dependent on Huawei technology for its infrastructure build-out prior to the ban. The operator claims these cybersecurity decisions caused "special and abnormal damages", leaving them no choice but to rip out and replace already installed hardware and completely pivot to alternate vendors like Nokia.

The lawsuit demands that the State compensate the operator for these forced, exorbitant replacement costs and structural overhauls. MEO is now taking legal recourse to ensure the economic burden of this geopolitical shift does not fall entirely on their balance sheet.
Huawei is considered a high-risk security threat in Portugal. The Portuguese government essentially banned domestic telecommunications operators from purchasing and using Huawei equipment in their 5G networks, following a strict cybersecurity assessment that highlighted risks of state-sponsored interference and espionage.

Portugal's international policy strategy regarding China seems far from having a defined direction, whatever that may be. There have been successive periods of love and disaffection over the years.

During his state visit to Portugal on December 4–5, 2018, Chinese President Xi Jinping's programme was marked by high-level diplomatic honors and extensive protocol. He was officially welcomed with full military honors by then-President Marcelo Rebelo de Sousa at the Jerónimos Monastery, followed by a state banquet, and he held formal talks with former Prime Minister António Costa, focusing on strengthening trade and integrating Portugal's Sines deep-water port into China's Belt and Road Initiative.

2023, a dark year

When the Security Assessment Commission (part of the Superior Council for Cyberspace Security) issued a deliberation effectively excluding the use of equipment from high-risk, non-EU suppliers, heavily targeting the Chinese vendor Huawei, something else was happening, as the famous magic word - "corruption" - made its appearance proudly.
"Picoas Operation" was born. Portuguese judicial authorities raided Altice's offices to investigate alleged corruption, tax fraud, and procurement irregularities, further putting the spotlight on the way Altice managed contracts and supplied services within Portugal. This was not about any harm Drahi caused to Portugal, but rather about alleged Altice officials who harmed Drahi himself.

In this astonishing way, the State ruined the name of the Altice company appearing to want to "protect" the same organization that for years it tried to defame and destroy, such as in March 2022, when the socialist government dismissed the then-president of SIRESP, Sandra Perdigão, accusing her of close ties to Altice. Days later, Drahi's name was sought at the Porto synagogue by the Lisbon prosecutor's office. Days later, Perdigão's house was burgled during the night and her two computers were stolen. Days later, the assault was described in a book by the Jewish community of Porto, saying: "We are Jews, we are not stupid".