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Supreme Court Sides with FCC Power in Forfeiture Process

The 8-1 ruling preserves a key FCC enforcement tool as Verizon and AT&T challenge $100 million in penalties over customer location data.

  • On Tuesday, the Supreme Court ruled against AT&T and Verizon, upholding the Federal Communications Commission's authority to impose administrative financial penalties for privacy violations. The 8-to-1 decision preserves the FCC's enforcement power without requiring an initial jury trial.
  • The dispute stemmed from nearly $100 million in proposed fines after the FCC concluded AT&T and Verizon unlawfully sold customer real-time location data to third parties without consent. Regulators determined the companies failed to adequately safeguard sensitive customer records.
  • Companies argued the FCC's process violated their Seventh Amendment right to a jury trial, creating conflicting rulings between the 2nd and 5th Circuit courts. The Supreme Court's 8-to-1 decision ultimately rejected these constitutional objections.
  • Writing for the majority, Chief Justice John Roberts concluded that FCC orders do not create immediate payment obligations because companies retain opportunities to challenge penalties in court. The Trump administration successfully defended the agency's administrative enforcement mechanism.
  • Although the Court's conservative majority has recently restricted agency authority, this ruling maintains a key FCC enforcement tool for protecting consumers. Legal experts suggest companies may continue aggressively contesting future agency orders in federal court.
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The Times of Northwest IndianaThe Times of Northwest Indiana
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High court backs FCC in case about penalties

WASHINGTON — The U.S. Supreme Court backed the Federal Communications Commission's system for levying fines, ruling Thursday against wireless carriers AT&T and Verizon in their challenge to the agency and handing a win to President Donald Trump's administration.

·Cherokee County, United States
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Reuters broke the news in New York, United States on Thursday, June 4, 2026.
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