By Alexandra Alper and Eric Beech
WASHINGTON (Reuters) -A powerful U.S. committee that scrutinizes foreign investment for national security risks fined T-Mobile $60 million, its largest penalty ever, for failing to prevent and report breaches of sensitive data, senior U.S. officials said on Wednesday.
The penalty imposed by the Committee on Foreign Investment in the U.S. (CFIUS) is tied to violations of a mitigation agreement that German-owned T-Mobile inked with the panel as part of its $23 billion acquisition of U.S.-based Sprint Corp in 2020.
T-Mobile did not immediately respond to a request for comment.
“The $60 million penalty announcement highlights the committee’s commitment to ramping up CFIUS enforcement by holding companies accountable when they fail to comply with their obligations,” one of the officials said, adding that transparency around enforcement actions incentivizes other companies to comply with their obligations.
The size of the fine, and CFIUS’s unprecedented decision to make it public, show the committee is serious about taking a more muscular approach to enforcement as it seeks to deter future violations.
(Reporting by Alexandra Alper; Editing by Eric Beech and Marguerita Choy)
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