T-Mobile has suffered a significant legal defeat after a federal court rejected the carrier’s attempt to overturn a $92 million fine related to customer location data protection failures. The ruling represents a major setback for the Un-carrier’s efforts to challenge federal regulators’ authority over privacy matters.

The penalty stems from the FCC’s determination that T-Mobile failed to adequately protect customer location information from being misused by third-party companies. As reported by Android Authority, T-Mobile mounted an aggressive legal defense, arguing that the FCC had misinterpreted telecommunications law, miscalculated the penalty amount, and even violated the company’s constitutional rights by denying a jury trial.

U.S. District Court Judge Florence Pan rejected all of T-Mobile’s arguments, finding that the carrier was indeed responsible for safeguarding customer data from outside misuse. Notably, the court determined that T-Mobile didn’t dispute the actual facts of what happened – only whether those actions constituted a legal violation.

T-Mobile’s legal troubles are part of a broader regulatory sweep that hit all major carriers in 2024, with the FCC issuing fines ranging from $47 million to $92 million. However, T-Mobile drew the largest penalty and is now the first carrier to lose its appeal, potentially making it harder for AT&T and Verizon to successfully challenge their own fines.

In response to the ruling, T-Mobile emphasized that it discontinued location data sharing more than six years ago and stated the company is “currently reviewing the court’s action.” The carrier has not indicated whether it plans to pursue further appeals.

The decision comes at a time when T-Mobile has been working to rebuild customer trust following several high-profile data breaches in recent years. While $92 million represents a substantial fine, it’s unlikely to significantly impact the carrier’s financial position or operations.

Source: Android Authority