AT&T and Verizon lose Supreme Court case over fines for selling location data

In a significant ruling today, the Supreme Court upheld fines imposed on AT&T and Verizon for the unauthorized sale of users' real-time location data. The decision confirmed that the Federal Communications Commission (FCC) followed proper procedures in issuing these financial penalties, rejecting the carriers' claims regarding their right to a jury trial. Previously, AT&T had successfully persuaded the U.S. Court of Appeals for the 5th Circuit to overturn its fine, while Verizon faced a setback in the 2nd Circuit. The Supreme Court's intervention aimed to resolve the disparities in these rulings. In an 8-1 decision, with Justice Clarence Thomas dissenting, the Court reversed the lower court's decision favoring AT&T. The FCC had levied a total of $104 million in fines against both carriers in 2024, stemming from violations that surfaced in 2018. Despite paying these fines, both companies sought to challenge them in appeals courts, arguing that the financial penalties infringed upon their Seventh Amendment rights, which guarantee the right to a jury trial. Chief Justice John Roberts, writing for the majority, articulated that the carriers could have opted for a jury trial by refusing to pay the fines, which would have led to a government collection process. This process would ultimately allow each carrier the opportunity for a jury trial. Roberts emphasized that the FCC's proceedings were consistent with the Supreme Court's precedents regarding the Seventh Amendment, asserting that the orders in question did not establish a definitive obligation to pay on the part of the carriers. Before any payment could have been enforced, the government was required to substantiate its case in a jury trial.