"The orders at issue did not settle the carriers’ legal obligations because, stated simply, they did not create an obligation to pay."
— Chief Justice John Roberts
The Supreme Court ruled 8-1 on Thursday to uphold a Federal Communications Commission (FCC) enforcement process, used to impose a combined $100 million in penalties on AT&T and Verizon for failing to safeguard customer location data.
Ruling Details
Chief Justice John Roberts wrote the majority opinion. Justice Clarence Thomas filed the sole dissent.
Background of the Case
The case originated from FCC fines against AT&T and Verizon for allegedly failing to protect customer location data.
Verizon and AT&T challenged the FCC's enforcement process, arguing it was unconstitutional because it denied them an opportunity to present their case before a jury.
The Trump administration defended the fines as an essential regulatory tool, but conceded that companies did not have to pay the penalties immediately.
Implications
The decision upheld the FCC's enforcement process without addressing broader constitutional challenges.
Advocates noted that a broader victory for the companies could have affected similar enforcement methods used by other federal agencies.