AT&T and Verizon Lose Supreme Court Fight Over FCC Fines for Selling User Location Data

AT&T and Verizon have lost a major legal battle after the U.S. Supreme Court rejected their attempt to overturn millions of dollars in fines imposed by the Federal Communications Commission (FCC) over the sale of customer location data. The decision marks an important win for federal regulators and reinforces the FCC’s authority to take action against carriers that fail to protect sensitive customer information.

The dispute dates back to April 2024, when the FCC fined several wireless carriers for violating provisions of the Telecommunications Act of 1996. According to the agency, the companies shared customer location data with third parties without first obtaining proper consent from users.

The FCC imposed a $57 million fine on AT&T and roughly $47 million on Verizon. The agency also fined T-Mobile $80 million and Sprint about $12 million for similar violations.

Both AT&T and Verizon paid the penalties but continued to challenge the FCC’s actions through the court system.

The Companies’ Main Argument

AT&T and Verizon argued that the FCC violated their Seventh Amendment rights by imposing punitive fines without giving them access to a jury trial. The companies claimed that such penalties should not be enforced through an administrative process alone.

The FCC disagreed and maintained that its forfeiture orders were not automatically binding. The agency argued that any effort to enforce those penalties would ultimately provide the companies with access to a court proceeding and a jury trial if necessary.

Supreme Court Sides With the FCC

In an 8-1 ruling, the U.S. Supreme Court sided with the FCC and rejected the carriers’ core argument. The court ruled that FCC forfeiture orders do not become legally binding until the Department of Justice files a lawsuit to enforce them.

As a result, the decision preserves the FCC’s ability to issue fines against telecommunications companies and represents a significant setback for AT&T and Verizon’s effort to weaken the agency’s enforcement powers.