Christopher Swift Assesses CFIUS Involvement in Telecommunications Acquisition
Foley & Lardner LLP partner Christopher Swift shared insight on the Committe on Foreign Investment in the United States’ (CFIUS) involvement in a telecommunications transaction in The Capitol Forum article, “T-Mobile/UScellular: Team Telecom’s Deference Gives DOJ, FCC Flexibility to Penalize Buyer If It Violates Agreement.”
Commenting on the deal’s regulatory path, Swift explained, “CFIUS shouldered the burden in this case through the amended National Security Agreement, with Team Telecom reserving the right to take additional action under its authorities if need.”
Team Telecom, an interagency panel that examines potential national security concerns arising from foreign investment into the U.S. telecommunications sectors, cannot issue formal approvals like CFIUS, though it can offer recommendations to the Federal Communications Commission. In this particular case, it declined to recommend action.
“Asking Team Telecom to take additional steps in a case where CFIUS has reached a final resolution with the parties on the potential national security issues could be redundant or overly burdensome,” Swift added.
