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Supreme Court sides with President Donald Trump’s administration on federal regulation of telecommunications companies – Chicago Tribune

Supreme Court sides with President Donald Trump’s administration on federal regulation of telecommunications companies – Chicago Tribune


WASHINGTON — The Supreme Court sided with the Trump administration Thursday in upholding the power of federal regulators to apply data privacy laws to telecommunications companies.

The 8-1 decision preserved one of the Federal Communications Commission’s key tools, although the companies also won a concession from the Republican administration that could change the regulatory landscape.

The appeal from telecommunications giants Verizon and AT&T challenged a combined $100 million in penalties imposed after the agency determined the companies failed to protect customer location data.

The companies argued that the FCC process was unconstitutional because it gave them little opportunity to tell their side of the story in front of a jury.

The administration has defended that fines are an essential regulatory tool. But the government also said businesses would not have to pay the penalties immediately, representing a regulatory shift in favor of business.

The Supreme Court agreed, upholding the FCC’s authority to impose fines when challenges are still possible.

“The orders at issue do not resolve the legal obligations of carriers because, put simply, they do not create an obligation to pay,” Chief Justice John Roberts wrote for the majority.

Justice Clarence Thomas, the lone dissenter, said it would have given companies a clearer path to recoup fines they had already paid.

Other agencies use similar enforcement methods, so a blowout victory for AT&T and Verizon could have had widespread effects, advocates said.

Environmental group Earthjustice applauded the decision, saying it has direct implications for other agencies and is a key case for energy efficiency.

“By rejecting this unsupported attack on agency authority, the Court’s decision protects the government’s ability to enforce laws that protect people, communities and the environment,” said Caroline Flynn, the group’s Supreme Court attorney.

The libertarian-leaning New Civil Liberties Alliance was disappointed by the decision, but expects it to help other companies in the future. “In fact, it might even strengthen their willingness to challenge future agency orders in federal court before paying penalties,” said alliance President Mark Chenoweth.

The Supreme Court’s conservative majority has ruled against federal agencies and limited their power in the past. That includes overturning a decades-old ruling that gave regulators an advantage in court and depriving another agency of a major tool in the fight against securities fraud.

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