The Supreme Court ruled Tuesday that the Federal Communications Commission has the authority to impose financial penalties on AT&T and Verizon for improperly selling consumers’ real-time location data.

The 8-1 decision preserves the FCC’s administrative enforcement system and represents a significant victory for federal regulators overseeing privacy violations in telecommunications. The ruling came after the two carriers challenged the FCC’s penalty process, arguing it bypassed their constitutional right to a jury trial.

The Legal Challenge

Last year, AT&T convinced the 5th U.S. Circuit Court of Appeals to overturn an FCC fine, claiming the agency’s enforcement procedure violated constitutional protections. Verizon faced a similar challenge but lost before the 2nd Circuit, creating conflicting rulings that prompted Supreme Court review.

The carriers argued that the FCC’s framework-which allows companies to pay fines and seek review through federal courts rather than face initial jury trials-deprived them of constitutional safeguards in civil cases involving substantial financial penalties.

What the Court Decided

Chief Justice John Roberts wrote that the FCC’s penalty process fits within the court’s Seventh Amendment precedents.