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Supreme Court to Hear FCC Fines Case

Ars Technica - All content •
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The Supreme Court agreed to hear a case that could strip the Federal Communications Commission of its power to levy fines against telecommunications companies. The legal battle stems from 2024 penalties totaling $196 million imposed on AT&T, Verizon, and T-Mobile. The FCC punished the carriers for illegally selling customer location data without consent, a practice first exposed in 2018.

The carriers argue the FCC’s enforcement process violates their Seventh Amendment right to a jury trial. They cite the Supreme Court’s 2024 decision in *SEC v. Jarkesy*, which limited agency penalties in certain contexts.

However, lower courts issued conflicting rulings. The 5th Circuit agreed with AT&T that the FCC acted as "prosecutor, jury, and judge," while the 2nd Circuit ruled Verizon had waived its right to a trial by paying the fine rather than fighting it in district court. Consolidating these appeals, the justices will now determine if the Communications Act grants the FCC too much unchecked power over corporate punishments.