The US Court of Appeals for the 2nd Circuit has finalized a crucial decision against telecommunications giant Verizon, upholding a $46.9 million fine imposed by the FCC for sharing customer location data without proper consent. The fine traces back to 2024 when Verizon, along with T-Mobile and AT&T, were penalized for giving access to customer data to aggregators like LocationSmart and Zumigo.
The court’s verdict emphasizes the classification of customer location data as customer proprietary network information. This data necessitates protection under the Communication Act’s privacy guidelines. Verizon’s attempt to contest the decision highlighted objections that the FCC’s ruling was arbitrary, and that the penalty was excessive. However, the court’s judgment was unequivocal, stating, “We disagree [with Verizon].” The ruling further articulated that Verizon, indeed, had an opportunity for a jury trial but chose to forgo it.
The milestone judgment affects an earlier ruling where the FCC levied a collective $200 million fine on T-Mobile, AT&T, and Verizon. The investigation revealed that the carriers offloaded their responsibility to secure customer consent onto downstream recipients, failing to secure consent from the customers themselves.
While T-Mobile received the heaviest fine, capped at around $92 million, AT&T managed to overturn its $57 million fine earlier this year. The absence of a guaranteed jury trial raised substantial concerns in AT&T’s favor. Conversely, T-Mobile’s attempt to overturn the fine didn’t meet the same success, with their appeal dismissed recently.
The final rejection of Verizon’s appeal reassures the enforcement of privacy protections in the telecommunications sector. The FCC had outlined these penalties after noticing the transgressions of location data sharing as early as 2018, although formal penalties were delayed until 2024 due to internal disagreements.
This ruling underscores the critical emphasis on data privacy and protection within the telecom industry. It’s a powerful reminder to all operators about the necessity of stringent measures in handling sensitive customer information. As these legal battles unfold, they reshape the telecom landscape, reinforcing regulations and compelling telecom companies to align with rigorous privacy standards.
This decision and its implications will surely be a topic of discussion at the upcoming Connected America 2026 event, where industry stakeholders will gather to dissect such prevailing issues.
