Two telecom companies argued that the FCC’s internal adjudication system violates their constitutional rights.
The U.S. Supreme Court on June 4 left intact the Federal Communications Commission’s (FCC) power to levy large fines through its in-house adjudication system.
The dispute was the latest legal case to test whether the in-house enforcement system used by a federal agency violates the Seventh Amendment.
The case came after the Supreme Court limited the Securities and Exchange Commission’s use of in-house administrative tribunals two years ago in SEC v. Jarkesy, finding that defendants facing civil penalties are entitled to a jury trial under the Seventh Amendment.
Chief Justice John Roberts wrote the court’s 8–1 opinion in FCC v. AT&T and Verizon Communications v. FCC, which were heard together on April 21.
Justice Clarence Thomas dissented.
The case arose after the FCC ordered AT&T and Verizon to pay $57 million and almost $47 million, respectively, for allegedly sharing customer location data with third parties without consent, a violation of the federal Telecommunications Act.
This is a developing story and will be updated.
