The U.S. Supreme Court upheld the Federal Communications Commission’s fining process in an 8-1 ruling. This decision rejects a constitutional challenge brought by AT&T and Verizon.
The FCC previously imposed fines exceeding $100 million on the carriers for failing to protect customer location data. The companies argued the agency's internal penalty system violated their Seventh Amendment right to a jury trial.
Chief Justice John Roberts stated that FCC forfeiture orders do not create an immediate, binding obligation to pay. The Court ruled that companies maintain jury trial rights if the Justice Department files a collection lawsuit. This decision preserves a critical regulatory tool for federal oversight of the telecommunications industry.