Updated
Updated · The Associated Press · Jun 4
Supreme Court Upholds FCC's $100 Million Privacy Penalty Power in 8-1 Ruling
Updated
Updated · The Associated Press · Jun 4

Supreme Court Upholds FCC's $100 Million Privacy Penalty Power in 8-1 Ruling

3 articles · Updated · The Associated Press · Jun 4

Summary

  • An 8-1 Supreme Court ruling preserved the FCC's ability to pursue penalties against telecom carriers after Verizon and AT&T challenged roughly $100 million in fines over customer location-data safeguards.
  • Chief Justice John Roberts wrote that the FCC orders did not immediately require payment, so the companies' jury-trial rights were not yet violated under the agency's process.
  • The Trump administration defended the fines as a key enforcement tool but also conceded that carriers need not pay right away, a shift that gives companies more room to fight penalties.
  • Justice Clarence Thomas dissented, saying he would have gone further in curbing agency power, while advocates said a broader win for the carriers could have weakened similar enforcement systems across federal regulators.
  • The decision stands out because the court's conservative majority has recently cut back agencies' authority, including by overturning Chevron deference and limiting the SEC's in-house fraud enforcement.

Insights

How will this 'trial-later' model for FCC fines reshape the enforcement powers of all other federal agencies?
With fines now delayed, will telecom giants dare the government to sue them over every single penalty?