Supreme Court sides with FCC in clash with wireless carriers over fines
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The exterior of Verizon and AT&T stores, Coconut Grove, Miami, Florida. Jeff Greenberg | Universal Images Group | Getty Images The U.S. …
The exterior of Verizon and AT&T stores, Coconut Grove, Miami, Florida. Jeff Greenberg | Universal Images Group | Getty Images The U.S. Supreme Court backed the Federal Communications Commission's system for levying fines, ruling on Thursday against wireless carriers AT&T and Verizon in their challenge to the agency and handing a win to President Donald Trump 's administration. The ruling was 8-1. At issue in the legal dispute was whether the agency's in-house proceedings for imposing the penalties deprived the companies of their right to a jury trial under the U.S. Constitution. Trump's administration defended the FCC's system for assessing financial penalties, known as forfeiture orders. The FCC fined AT&T $57 million and Verizon nearly $47 million after the agency concluded that the companies had unlawfully sold access to customer location data to third parties without securing the consent of users. In all, the FCC imposed nearly $200 million in fines on carriers that it said failed to safeguard customer data. It fined T-Mobile $80 million and Sprint, which T-Mobile acquired in 2020, $12 million. Verizon and AT&T paid the fines they were assessed, but also filed legal challenges that eventually led to a split among regional U.S. appellate courts over the lawfulness of the FCC's in-house procedure for imposing the penalties. In Verizon's case, the New York-based 2nd U.S. Circuit Court of Appeals upheld the fine. …
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