MADRID (Reuters) -The Spanish government has cancelled a fiber-optic service contract with Telefonica over the use of equipment made by China’s Huawei amid concerns in Europe that such gear may pose a security risk, the Digital Transformation Ministry said.

“We confirm the cancellation of the contract for reasons of digital strategy and strategic autonomy,” the ministry said in an emailed statement, without elaborating.

The report by El Pais newspaper earlier on Friday also said that through this 10 million-euro ($11.7 million) contract, Telefonica was to supply fiber-optic connections to a series of government institutions including the Defence Ministry.

A Telefonica spokesperson declined to comment.

Telefonica’s Chief Operating Officer Emilio Gayo told Reuters last month that the com

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