CFIUS Fines T-Mobile $60M
The Committee on Foreign Investment in the U.S. has levied nearly $70 million in penalties so far this year, including a $60 million fine against T-Mobile after the carrier violated its national security agreement (NSA). The undated announcement was the…
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first time CFIUS named a company it has penalized. It comes after CFIUS last year issued a record-setting four penalties and in April proposed expanding its enforcement powers, underscoring its recent focus on punishing violators and increasing penalties. The action against T-Mobile was tied to a 2018 NSA between CFIUS and the carrier. CFIUS found that “between August 2020 and June 2021, in violation of a material provision of the NSA, T-Mobile failed to take appropriate measures to prevent unauthorized access to certain sensitive data and failed to report some incidents of unauthorized access promptly to CFIUS, delaying the Committee’s efforts to investigate and mitigate any potential harm.” A T-Mobile spokesperson said Friday that several years ago the carrier “experienced technical issues during our post-merger integration with Sprint that affected information shared from a small number of law enforcement information requests out of the hundreds of thousands that we process each year.” There was no data breach or intrusion “and no bad actor was involved,” the spokesperson said in an email: “We take matters like this seriously. We reported this in a timely manner, and the issue was quickly addressed.”