Supreme Court Upholds FCC Authority in AT&T and Verizon Location Data Privacy Case
The Supreme Court on Tuesday ruled in favor of the Federal Communications Commission in a major case involving AT&T and Verizon’s challenge to federal penalties over the handling of customers’ real-time location data.
In an 8-1 decision, the justices rejected arguments that the FCC’s administrative enforcement process violated companies’ Seventh Amendment right to a jury trial. The ruling preserves the agency’s ability to impose financial penalties through its existing regulatory system.
The dispute began after the FCC issued roughly $104 million in fines against AT&T and Verizon in 2024, alleging that the companies improperly allowed access to consumers’ location information. The issue gained attention after reports in 2018 revealed that third parties, including unauthorized individuals, could obtain access to sensitive location data.
Both telecommunications companies challenged the FCC’s process, arguing that regulators were imposing major financial penalties without allowing the matter to be decided by a jury. The case reached the Supreme Court after conflicting decisions from federal appeals courts.
The 5th U.S. Circuit Court of Appeals had sided with AT&T and overturned the penalty, while the 2nd Circuit rejected Verizon’s similar challenge. The split led the Supreme Court to review the matter.
Writing for the majority, Chief Justice John Roberts said the FCC’s process did not violate constitutional protections because the companies had the option to contest the penalties through court proceedings if the government sought to enforce payment.
Roberts explained that FCC penalty orders do not automatically create a final obligation to pay and that the government would still need to prove its case in court before collecting the fines.
Justice Clarence Thomas was the only dissenting justice.
The decision represents a significant victory for federal regulators, as a ruling against the FCC could have limited the enforcement powers of many administrative agencies beyond telecommunications.
Consumer advocates welcomed the outcome, arguing that the ruling allows regulators to continue holding companies accountable for privacy violations and protecting sensitive consumer information. The decision also reinforces the government’s ability to use administrative enforcement tools while preserving judicial review when penalties are challenged.
