AT&T triumphs as FCC's ability to fine carriers is challenged

In the United States, on April 17, 2025, the 5th Circuit Court of Appeals issued a ruling that favored AT&T, invalidating a $57 million fine imposed by the Federal Communications Commission (FCC) for the unauthorized sale of customer location data. The court's decision stemmed from the argument that the FCC had violated AT&T's Seventh Amendment right to a jury trial by acting as prosecutor, jury, and judge in its enforcement proceedings. This ruling has significant implications for the FCC's authority to enforce financial penalties on telecommunications companies. The decision was influenced by previous Supreme Court rulings that affirmed the necessity of a jury trial when civil penalties are involved. In light of this ruling, both Verizon and T-Mobile have also challenged similar fines from the FCC in other courts, indicating a broader debate over the agency's regulatory power and the legal protections available to telecom companies. The 5th Circuit's decision highlights the ongoing conflict between federal regulatory authority and the rights of corporations, particularly in the telecommunications sector. As the FCC seeks to uphold its fines despite these setbacks, the outcome remains uncertain, and future legal battles may further shape the landscape of telecom regulation in the United States.