The U.S. Supreme Court ruled 8-1 in favor of the Federal Communications Commission, upholding the agency’s process for assessing fines and rejecting a constitutional challenge brought by AT&T ($T) and Verizon ($VZ). The case stemmed from FCC penalties imposed after the agency found major wireless carriers had improperly sold access to customer location data without user consent.
- The Supreme Court ruled that the FCC’s forfeiture-order process does not violate companies’ constitutional right to a jury trial.
- The FCC fined AT&T $57 million and Verizon nearly $47 million over customer location-data practices.
- The agency also imposed penalties of $80 million on T-Mobile and $12 million on Sprint, which was acquired by T-Mobile in 2020.
- AT&T and Verizon argued the FCC’s in-house proceedings caused reputational harm before a court review.
- The Trump administration defended the FCC’s enforcement framework before the Supreme Court.
- The ruling follows another Supreme Court decision in 2025 that upheld the FCC’s broadband and telecommunications funding program.
Relevant Companies
- AT&T ($T) – The company challenged the FCC’s fine process and was assessed a $57 million penalty related to customer location data practices.
- Verizon ($VZ) – Verizon’s nearly $47 million FCC penalty was directly at issue in the Supreme Court case.
- T-Mobile ($TMUS) – The ruling reinforces the FCC’s enforcement authority over carriers, including T-Mobile, which previously faced an $80 million penalty.
Editor’s Note: This is a developing story. This article may be updated as more details become available.
