The Supreme Court has delivered an 8-1 ruling on June 4 that upholds the Federal Communications Commission’s (FCC) authority to impose fines on major telecommunications companies, mandating a jury trial before any penalties can be collected.

Written by Chief Justice John Roberts, the decision rejects AT&T and Verizon’s constitutional challenge under the Seventh Amendment, which sought to block the FCC’s forfeiture process. The ruling addresses two consolidated cases: FCC v. AT&T (No. 25-406) and Verizon Communications v. FCC (No. 25-567).

The dispute originated from approximately $57 million in forfeiture orders against AT&T and $47 million against Verizon, tied to alleged failures in protecting customer location data. The Court clarified that while the FCC’s administrative process includes factual findings without a jury, the government must prove penalties in a trial de novo before enforcement can occur.

This requirement stems from the Communications Act, which authorizes the FCC to investigate violations but mandates that penalty collection undergo judicial oversight. Location data—critical for services like emergency response and roadside assistance—serves significant public benefits while raising privacy concerns. Carriers monitor cell site locations to provide service, yet this data must be subject to jury review prior to enforcement actions.

Justice Clarence Thomas dissented, arguing AT&T and Verizon reasonably understood the orders as binding. However, the majority held that the statutory process survives constitutional scrutiny, ensuring companies retain their right to contest penalties in court before financial obligations take effect. The decision strengthens federal enforcement authority during the Trump administration while preserving due process for telecommunications firms.