Supreme Court sides with Trump administration on federal regulation of
telecom companies
[June 05, 2026] By
LINDSAY WHITEHURST
WASHINGTON (AP) — The Supreme Court sided with the Trump administration
Thursday in upholding the power of federal regulators to enforce data
privacy laws on telecommunications companies.
The 8-1 decision preserved one of the Federal Communications
Commission's key tools, though the companies also won a concession from
the Republican administration that could shift the regulatory landscape.
The appeal from telecommunications giants Verizon and AT&T challenged a
combined $100 million in penalties imposed after the agency determined
that the companies had failed to safeguard customer location data.
The companies argued that the FCC's process was unconstitutional because
it gave them little opportunity to tell their side of the story in front
of a jury.
The administration defended the fines as an essential regulatory tool.
But the government also said companies did not have to pay the penalties
right away, a regulatory shift in the companies' favor.
The Supreme Court agreed, affirming the FCC's power to order fines when
challenges are still available.
“The orders at issue did not settle the carriers’ legal obligations
because, stated simply, they did not create an obligation to pay,” Chief
Justice John Roberts wrote for the majority.
Justice Clarence Thomas, the lone dissenter, said he would have given
the two telecom companies a clearer path to recouping the fines they
already paid.
Other agencies use similar enforcement methods, so a sweeping victory
for AT&T and Verizon could have had widespread effects, advocates said.
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 The environmental group Earthjustice
applauded the ruling, saying it has direct implications for other
agencies and a key energy-efficiency case.
“By rejecting this unsupported attack on agency authority, the
Court’s decision safeguards the government’s ability to enforce laws
that protect people, communities, and the environment," said
Caroline Flynn, the group's Supreme Court counsel.
The libertarian-leaning New Civil Liberties Alliance was
disappointed by the decision, but expected it to help other
companies in the future. “In fact, it may even buttress their
willingness to challenge future agency orders in federal court
before paying any penalties,” said the alliance's president, Mark
Chenoweth.
A few more carriers may decide to litigate, but the decision leaves
the FCC with the power to “publicly announce large fines with much
fanfare," said Doug Orvis, a veteran telecom attorney. “It will be
interesting to see what happens going forward."
The Supreme Court’s conservative majority has sided against federal
agencies and limited their power before. That includes overturning a
decades-old decision that had given regulators an advantage in court
and stripping another agency of a major tool in fighting securities
fraud.
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