The U.S. Supreme Court heard arguments on April 21, 2026, from Verizon Communications and AT&T challenging the Federal Communications Commission’s forfeiture‑order process, which allows the agency to impose penalties without a jury trial. The carriers argue that the process violates the Seventh Amendment’s guarantee of a jury trial in civil cases.
The FCC maintains that forfeiture orders are not binding until they are enforced in court, where a jury trial would be available. The agency contends that the administrative process is distinct from criminal proceedings and that the carriers can seek judicial review after the order is issued.
The fines at issue total approximately $104 million: the FCC imposed a $57 million penalty on AT&T and a $47 million penalty on Verizon for illegally sharing customer location data in 2024. The combined amount exceeds $100 million, matching the figure cited in the original report.
The case is framed by the Supreme Court’s 2024 decision in SEC v. Jarkesy, which limited the power of in‑house administrative proceedings to impose penalties. A circuit split also exists: the Fifth Circuit ruled in favor of AT&T, while the Second Circuit upheld the FCC’s fine against Verizon.
If the Court upholds the FCC’s authority, Verizon and its peers will face the full weight of the agency’s fines. A ruling in favor of the carriers could shift enforcement to federal courts, potentially increasing litigation costs and time to resolution for telecom regulators.
Jeffrey Wall, a lawyer for the companies, said, "unlike criminal defendants, the companies cannot simply choose to take their chances in front of a jury. 'We just have to wait to see if they come after us. And if we don't, it hangs over our head for years.'"
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