The FCC was fined by operators for sharing customer location data
By John Kruzel and Andrew Chung
The US Supreme Court is set to hear a case on Tuesday involving fines imposed by the Federal Communications Commission on major American mobile phone operators for failing to protect customer data. This case challenges the regulatory agency’s authority.
The legal battle revolves around whether the FCC’s evaluation of millions of dollars in penalties against operators such as Verizon Communications and AT&T – before court hearings – exceeded the agency’s authority under the US Constitution. The Trump administration defends the FCC’s internal system of financial sanctions.
This case is the latest to determine if an agency’s internal enforcement mechanism violates constitutional provisions. The FCC case stems from fines imposed in 2024 on mobile phone operators for selling customer location data to third parties without user consent.
The fines included $80 million for T-Mobile, $12 million for Sprint (acquired by T-Mobile in 2020), $57 million for AT&T, and $47 million for Verizon Communications. Verizon and AT&T paid the fines and challenged the FCC’s internal procedures in court.
The case reflects a debate over whether the FCC’s internal system displaces court proceedings, depriving companies of their right to a jury trial. The Supreme Court, with a conservative majority, has historically limited federal agency powers in key rulings.
Last year, the Supreme Court ruled in favor of the FCC in approving the agency’s funding program to expand phone and internet access for low-income Americans and other beneficiaries.
