Wall St.Journal Weekend 29Feb2020

Federal Communications Commis-

sion enforcers told the country’s top

cellphone carriers to pay more than

$200 million in penalties for alleg-

edly mishandling sensitive location

data, a punishment at least one of

the companies has already vowed to

contest.

The telecom regulator is seeking

more than $91 million fromT-Mo-

bile USInc., $57 million fromAT&T

Inc., $48 million fromVerizon Com-

municationsInc. and $12 million

fromSprintCorp. T-Mobile said in a

statement that it ended its location-

sharing program in February 2019

and would fight the proposed fine.

“While we strongly support the

FCC’s commitment to consumer pro-

tection, we fully intend to dispute

the conclusions of this NAL and the

associated fine,” a T-Mobile spokes-

woman said, referring to the notices

of apparent liability through which

the five-member commission dis-

closed the fines. Spokespeople for

AT&T, Verizon and Sprint said they

were still reviewing the notices.

The FCC said the proposed pen-

alty amounts reflected the length of

time each carrier had shared infor-

mation without proper safeguards

and the number of entities that had

access to the data. The Wall Street

Journal reported Thursday that the

FCC was seeking the fines.

The carriers can challenge the

penalties proposed under the FCC’s

decision, which would also charge

the companies for each future time

they share cellphone coordinates

without user permission.

“The FCC has long had clear rules

on the books requiring all phone

companies to protect their custom-

ers’ personal information,” FCC

Chairman Ajit Pai said in a state-

Please turn to page B

BYDREWFITZGERALD

Cellphone Giants Slapped

With $200 Million in Fines

T-Mobile is hit with biggest penalty for handling

they contend were efforts by a pair of of customers’ locationdata, but itvows a fight

senior Boeing pilots to mislead them

about the need for any simulator

training when the MAX was first certi-

fied to carry passengers, the officials

familiar with the details said.

In one internal message from 2015,

a Boeing employee compared the

knowledge levels of FAA regulators to

those of household pets. Describing

the regulators’ response to a company

presentation aimed at minimizing

training requirements for 737 MAX pi-

lots, the employee said: “It was like

dogs watching TV.”

Boeing has repudiated that and

other messages made public over the

past few months, saying a cavalier at-

titude toward safety doesn’t represent

company values. FAA officials have

played down any tensions with Boe-

ing. Nonetheless, the industry and

government officials said, lingering

hard feelings could complicate an al-

ready convoluted process.

A spokesman for Boeing said its

training proposals, expected to be ap-

Please turn to page B

Plans to mandate simulator train-
ing for pilots beforeBoeingCo.’s 737
MAX can return to service—already a
time-consuming and costly undertak-
ing—could face a further complica-
tion: personal friction between the
plane maker’s staff and U.S. govern-
ment officials.
Internal Boeing messages recently
made public amid House and Senate
investigations showed company pilots
ridiculing their counterparts at the
Federal Aviation Administration.
Now several of those agency ex-
perts are responsible for helping ap-
prove a version of Boeing’s updated
training programs, according to indus-
try and government officials familiar
with the details.
How the two sides get along could
partly determine how long it takes to
get the MAX flying again, nearly a
year after it was grounded following
two fatal crashes. Some of the FAA
employees are still fuming over what

BYANDYPASZTOR
ANDALISONSIDER

Boeing, FAA Tension

Risks Delay for MAX

How Disney’s

Bob Iger turned the

Magic Kingdom into

a brand empire.

B

INSIDE

17,
The number of different Procter &
Gamble products that rely on
materials from China, according to
the company.

32%
The percentage gain in February for
shares of Regeneron Pharmaceuticals,
which is developing antibody
treatments for the coronavirus.

$175 million

Expected hit to Walt Disney’s

operating income in the current

quarter if its shuttered Shanghai

and Hong Kong theme parks

remain closed for two months,

according to the company.

16%

China’s share of global gross domestic

product in 2018.

The percentage of the world’s toys that are made in

China. Toy companies are struggling to fill retail orders

as the epidemic disrupts the industry’s supply chain.

85%
The decrease in ‘business activity’
reported by sportswear company
Adidas from Jan. 25 to Feb. 19 in
Greater China, compared to the
same period a year earlier.

Brentcrude-oilprice

Note: Front-month futures

Source: Dow Jones Market Data

March Aug.

2019

Jan.

’

$

50

55

60

65

70

a barrel

Share-priceandindexperformance

Source: FactSet

Regeneron

S&P 500

40

• 
  

0

10

20

30

%

Feb.

ShareofglobalGDP

Source: The World Bank

40

0

10

20

30

%

1960 ’70 ’80 ’90 2000 ’

U.S.

Euro area

China

0

China’s box office revenue for this

year’s Lunar New Year holiday

season, compared with the holiday-

period total a year ago of 5.9 billion

yuan ($840 million).

92%

THE PERCENTAGE

DECLINE IN VEHICLE

SALES IN CHINA IN

THE FIRST 16 DAYS

OF FEBRUARY.

90%

The percentage of Chinese

exporters reporting difficulty

shipping goods, according to a

Chinese Commerce Ministry

survey of 7,000 companies. 85%

CLOCKWISE FROM TOP LEFT: RINGO CHIU/ZUMA PRESS; NICOLAS ASFOURI/AFP/GETTY IMAGES; EUGENE HOSHIKO/AP; PAUL YEUNG/BLOOMBERG; ISTOCK/GETTY IMAGES; QILAI SHEN/BLOOMBERG; DANIEL ACKER/BLOOMBERG; ALEX PLAVEVSKI/SHUTTERSTOCK

SIMON DAWSON/BLOOMBERG NEWS (BLACKROCK);

TIFFANY HAGLER-GEARD/BLOOMBERG (IGER)

$3.

TRILLION

WAKE-UP CALL

The coronavirus epidemic is sending ripples

through every corner of the global economy,

slashing revenues, roiling supply chains—and, this

past week, wiping trillions from the stock market.

A look at the new financial landscape.B4-B

$1.1 billion

Ad commitments

secured by

NBCUniversal for the

Olympics as of January.

An Olympic official

raised the possibility

of postponing or

canceling the Tokyo

Olympics this summer

due to the coronavirus.

EXCHANGE

Plot Twist

BlackRock fires a

fund manager who

financed moviesB

Moneybags

The secondhand

market for Hermès

pursesB

BUSINESS|FINANCE|TECHNOLOGY|MANAGEMENT

DJIA25409.36g357.28 1.4% NASDAQ8567.37À0.01% STOXX 600375.65g3.5% 10-YR. TREAS.À1 19/32, yield 1.127% OIL$44.76g$2.33 GOLD$1,564.10g$75.90 EURO$1.1027 YEN108.

Estimated drop in container volumes in February at

the Port of Los Angeles, the largest U.S. gateway for

seaborne imports from China.

$50.

Friday’s closing cost per barrel for

Brent crude futures, the global

gauge of oil prices, the lowest in

more than a year. Traders expect

the spreading coronavirus will

cripple demand.

15%

The percentage of

Apple’s revenue

derived from China.

The company said

it wouldn’t be able

to meet its fiscal

second-quarter

financial guidance.

MORE

THAN

200,

FLIGHTS TO, FROM

AND WITHIN

CHINA THAT HAVE

BEEN CANCELLED

BY AIRLINES

WORLD-WIDE IN

RESPONSE TO THE

CORONAVIRUS.

25%

A

THE WALL STREET JOURNAL. **Saturday/Sunday, February 29 - March 1, 2020 |B