The US Supreme Court has agreed to take up a high stakes dispute over hefty fines imposed by the Federal Communications Commission on major wireless carriers for allegedly sharing customer location data without consent. The case places fresh scrutiny on the constitutional limits of federal regulatory power and adds to a growing list of agency enforcement actions challenged before the nation’s highest court.
At the center of the dispute is whether the FCC overstepped its authority by seeking tens of millions of dollars in penalties from companies such as Verizon Communications and AT&T before the carriers had an opportunity to challenge the allegations in court. The companies argue that the agency’s enforcement process violates constitutional protections, including the right to a jury trial.
The justices are expected to hear arguments in the coming months, with a decision likely by the end of June.
The case stems from fines totaling nearly $200 million that the FCC issued in 2024 after concluding that several wireless providers sold access to sensitive customer location data to third parties without first obtaining user consent. The penalties included an $80 million fine against T Mobile, $12 million against Sprint, which was later acquired by T Mobile, $57 million against AT&T, and almost $47 million against Verizon.
The enforcement actions triggered legal challenges that produced conflicting rulings in federal appeals courts, prompting Supreme Court review. The New York based Second US Circuit Court of Appeals upheld the FCC’s penalty against Verizon, finding that the Constitution allows the agency to make an initial assessment of liability and fines as long as the targeted company can later contest the government’s efforts to collect those penalties in court. Verizon appealed that ruling to the Supreme Court.
A different outcome emerged in a case brought by AT&T. The Fifth US Circuit Court of Appeals, based in New Orleans, ruled that the FCC’s approach deprived the company of its constitutional right to a jury trial by allowing the agency to determine wrongdoing and impose fines internally. That decision led the FCC to seek Supreme Court intervention.
The dispute arrives at a time when the Supreme Court, which currently holds a conservative majority, has shown increasing skepticism toward expansive federal agency power. In recent years, the court has narrowed the scope of administrative authority in several landmark decisions.
In 2024, the justices struck down the Securities and Exchange Commission’s use of in house proceedings to impose penalties for securities fraud. The court ruled that such enforcement actions violated the Seventh Amendment by denying defendants their right to a jury trial when monetary penalties are at stake.
The FCC, however, has also found support at the Supreme Court. In 2025, the court upheld the agency’s funding structure for its multi billion dollar program aimed at expanding phone and broadband access to low income households and other eligible groups.
The upcoming ruling on the wireless fines could have far reaching implications for how federal agencies enforce regulations and assess penalties, particularly when large financial sanctions are involved. A decision limiting the FCC’s authority may reshape enforcement practices across the federal government, while a ruling in favor of the agency could reinforce the current regulatory framework.
