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Supreme Court Upholds FCC's Authority to Penalize AT&T and Verizon

On June 4, 2026, the Supreme Court ruled 8-1 in favor of the FCC, upholding its ability to impose penalties on telecommunications companies like AT&T and Verizon. The Court found that the FCC's penalty scheme is constitutional and does not violate the companies' rights to a jury trial. Justice Clarence Thomas dissented, arguing that the companies acted in good faith regarding the fines.

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The Supreme Court ruled 8-1 on June 4, 2026, in favor of the Federal Communications Commission (FCC), affirming its authority to impose penalties on telecommunications companies. The ruling addressed the constitutionality of the FCC's scheme for levying fines, specifically in the cases of FCC v. AT&T and Verizon Communications v. FCC. Chief Justice John Roberts stated that the FCC's penalty scheme does not violate the companies' Seventh Amendment right to a jury trial, noting that the fines were presented as preliminary findings rather than binding obligations.

Justice Clarence Thomas was the sole dissenter, arguing that AT&T and Verizon acted in good faith by paying the fines, believing them to be obligatory. He expressed concern that the Court's decision penalizes the companies for complying with a government order. During oral arguments, some justices raised questions about the FCC's previous stance on the binding nature of the fines, but ultimately, the majority sided with the FCC.

This ruling preserves a significant enforcement mechanism for the FCC against telecommunications companies, following a previous Supreme Court decision that invalidated the Securities and Exchange Commission's method of enforcing fines.

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Supreme Court upholds FCC’s ability to penalize AT&T and Verizon

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Supreme Court Upholds FCC's Authority to Penalize AT&T and Verizon