arstechnica.com 4 days ago URGENCY: 6/10

Supreme Court Rules Against AT&T and Verizon

AT&T and Verizon face hefty fines after the Supreme Court upheld FCC penalties for selling user location data without consent. Discover how this ruling impacts consumer privacy and corporate accountability.

Share
Supreme Court Rules Against AT&T and Verizon

Supreme Court Decision Explained

In a landmark ruling, the Supreme Court has upheld the Federal Communications Commission's (FCC) authority to impose fines on AT&T and Verizon for selling users' real-time location data without consent. The court's decision, which was largely in favor of the FCC, reversed a previous ruling by the 5th Circuit Court that had favored AT&T. This ruling clarifies that the FCC's penalties do not violate the carriers' right to a jury trial, as they could have opted to contest the fines in court.

The fines, totaling $104 million, stem from violations uncovered in 2018. Both carriers had challenged the penalties, arguing that the FCC's process deprived them of their Seventh Amendment rights. However, Chief Justice John Roberts emphasized that the carriers had the option to refuse payment and seek a jury trial, thus maintaining the integrity of the legal process.

This decision is significant for consumer privacy advocates, as it reinforces the FCC's ability to hold telecom companies accountable for their actions. John Bergmayer from Public Knowledge stated, "The Supreme Court got this one right," highlighting the importance of protecting consumer data from misuse by corporations.