US Supreme Court to Weigh FCC’s Power to Fine Wireless Carriers

The Supreme Court has agreed to hear a major case on whether the Federal Communications Commission (FCC) can impose large fines on wireless carriers like AT&T and Verizon through its own administrative process without first giving them a jury trial in federal court. The decision, expected by the end of June 2026, could significantly reshape how federal agencies enforce regulations and assess monetary penalties.​

What the case is about

• The dispute arises from nearly $200 million in fines the FCC issued in 2024 against major carriers for selling access to customers’ real-time location data to third parties without user consent.​

• Specific proposed penalties included about $80 million for T-Mobile, $12 million for Sprint, $57 million for AT&T, and nearly $47 million for Verizon.​

• The carriers argue that having the FCC determine violations and set large fines internally, before any court proceeding, violates their Seventh Amendment right to a jury trial.​

Lower court split

• The New York–based 2nd U.S. Circuit Court of Appeals upheld the FCC’s fine against Verizon, ruling that the Constitution allows the FCC to issue an initial penalty as long as companies can later challenge collection in court.​

• The New Orleans–based 5th U.S. Circuit Court of Appeals disagreed in a related AT&T case, holding that the FCC’s in‑house penalty process violated the right to a jury trial, and vacated the forfeiture order.​

• This conflict between circuits is what the Supreme Court is now stepping in to resolve.​

Why it matters beyond telecom

• The case continues a broader line of challenges to federal agencies’ in‑house enforcement powers, coming after a 2024 Supreme Court ruling that struck down the Securities and Exchange Commission’s similar internal penalty system for certain fraud cases.​

• A ruling that limits the FCC’s authority could constrain how many agencies impose civil penalties, potentially forcing more enforcement actions into federal courts and making it harder or slower to levy large fines.​

• A decision upholding the FCC’s process would strengthen existing regulatory enforcement frameworks, even as other parts of the Court’s recent case law have narrowed agency powers.​

What happens next

• The justices will hear arguments in the coming months of 2026 and are expected to issue a ruling by the end of June.​

• Until then, the challenged FCC fines remain in legal limbo, and agencies, companies, and privacy advocates are watching closely because the ruling could redefine the balance between regulatory power and constitutional jury‑trial rights.​