Communication

SCOTUS Weighs FCC Fines on AT&T, Verizon

Did the FCC rightfully punish AT&T and Verizon for sharing location data or unconstitutionally bypass due process?

APR 22·Updated APR 23

SCOTUS Weighs FCC Fines on AT&T, Verizon

Story

Above: An AT&T Inc store in Manhattan, New York City. Image credit: Nicolas Economou/NurPhoto/Getty Images

The Facts

The Supreme Court heard arguments in consolidated cases FCC v. AT&T and Verizon Communications v. FCC on Tuesday, examining whether the FCC's method of imposing fines violated the Seventh Amendment right to a jury trial.
Newsweek
The Washington Examiner
The FCC fined AT&T $57 million and Verizon nearly $47 million for allegedly sharing customers' real-time location data with third parties without consent, in violation of the Telecommunications Act.
Ars Technica
The Epoch Times
The Trump administration defended the FCC's forfeiture orders, arguing they are nonbinding and that companies could seek a jury trial by declining to pay and waiting for the Justice Department to file a civil lawsuit.
The New York Times
SCOTUSblog
Justices Brett Kavanaugh and Neil Gorsuch questioned the FCC over its apparent shift in position, with Kavanaugh telling AT&T and Verizon's attorney, "It seems like you've won on the law going forward, one way or the other."
The Economic Times
PBS News
The Washington Examiner
The Fifth Circuit ruled the FCC's process violated AT&T's constitutional rights, while the Second Circuit upheld Verizon's fine, finding the forfeiture system complied with the Seventh Amendment.
Shai Akabas
Broadband Breakfast
SCOTUSblog
A ruling against the FCC could affect at least five other federal agencies that use similar civil penalty systems, including the Energy Department and the Health and Human Services Department. A decision is expected by late June.
PBS News
The Economic Times
The New York Times

Sources Split

LEFT

CENTER

RIGHT

ESTAB
CRIT

CENTER

PRO
ESTAB

The Spin

Narrative A

AT&T and Verizon sold customers' sensitive location data without proper protections, and the FCC was right to fine them. The carriers don't even deny the wrongdoing — they just want to dodge accountability by gaming the legal process. Stripping the FCC of enforcement power leaves tens of millions of Americans with no real protection when telecom giants misuse their most personal data.

Democracy Forward

Narrative B

The FCC skipped the constitutionally required process by issuing massive fines without letting AT&T and Verizon contest the charges before a jury. The Seventh Amendment exists precisely to prevent government agencies from acting as judge, jury and executioner against regulated companies. Letting the FCC bypass federal court sets a dangerous precedent for unchecked regulatory power over major industries.

Manhattan Institute