Supreme Court Skeptical of Telecoms FCC Fines Challenge

The Supreme Court appeared skeptical on Tuesday of arguments by Verizon and AT&T challenging multimillion-dollar fines from the Federal Communications Commission for sharing customers' location data without consent, suggesting the telecom giants' concerns may not warrant limiting regulators' enforcement powers.

The case stems from an FCC investigation that concluded in April 2024, when the agency fined Verizon $46.9 million and AT&T $57 million, for a total exceeding $100 million. The penalties targeted the companies, along with Sprint and T-Mobile, for violating the Telecommunications Act of 1996 by providing third parties access to real-time and historical location information without customer approval. Sprint and T-Mobile, which merged during the probe, also faced fines but are not directly involved in the Supreme Court appeal.

Verizon and AT&T contended that the FCC's process violates their Seventh Amendment right to a jury trial by imposing penalties through administrative action without sufficient opportunity to present their defense in court. The companies argued that the fines function as binding judgments, pressuring them to pay up rather than risk prolonged litigation.