T-Mobile Imposed With A Hefty Fine By Government Agency For Its Negligence

T-Mobile has been under immense pressure for the past few months as it keeps landing in hot water. Whether it has been the controversy regarding a satellite tower being built in a school or a sales rep exposing the shady sales tactic, the telecommunication service provider has been facing backlash every now and then and has been struggling ever since its Sprint acquisition to bring the company back to its market position. Now, the Committee on Foreign Investment in the U.S. has shared the hefty fine it imposed on the company for a national security violation.

CIFU revealed that T-Mobile was penalized with a $60 million fine by the government agency for negligence

The Committee on Foreign Investment in the U.S. (CFIUS) is an inter-agency agency responsible for evaluating foreign companies that tend to invest in the U.S. and assessing whether they pose a national security threat. This review process applies when foreign companies acquire or merge with U.S. companies to calculate any security risks before allowing the companies to move forward.

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When T-Mobile went with the Sprint merger, CFIUS approval was required. Since the merger had foreign involvement and control over U.S. companies, it was vital for the agency to see if the deal, which had mainly foreign owners, posed any harm to national security.

CFIUS has revealed that between August 2020 and June 2021, T-Mobile did not take vigilant steps to ensure sensitive data was not breached and failed to act promptly by not reporting the matter on time. This delay led to the agency being unable to carry out the necessary investigation in a timely manner to review any national security threat and put the assets in a compromised situation.

Due to the violation, T-Mobile faced the largest fine of $60 million imposed by the committee to date in an attempt to re-emphasize the importance of companies adhering to the