The dispute arose after the FCC fined the three major carriers a combined $196 million in 2024 for location data sales that were initially revealed in 2018. The FCC stated that the companies were penalized for illegally sharing access to customers' location information without obtaining proper consent.

The companies challenged the FCC's ability to impose such penalties, leading to conflicting rulings in different appellate courts. AT&T successfully appealed its fine to the U.S. Court of Appeals for the 5th Circuit, which overturned the FCC's decision. Conversely, Verizon and T-Mobile were unsuccessful in their appeals to the 2nd Circuit and the District of Columbia Circuit, respectively.

Seeking to resolve the conflicting rulings, both Verizon and the FCC, along with the Justice Department, petitioned the Supreme Court. Verizon sought to reverse its loss in the 2nd Circuit, while the FCC and Justice Department aimed to overturn AT&T's victory in the 5th Circuit. The Supreme Court granted both petitions and consolidated the cases, according to a list of orders released Friday, and oral arguments will be scheduled.

This case raises fundamental questions about the scope of regulatory authority in the digital age. The FCC's ability to enforce data privacy rules and protect consumers from unauthorized data sharing is potentially at stake. A ruling against the FCC could significantly weaken its power to hold companies accountable for data privacy violations.

The outcome of this case could have broad implications for the regulation of emerging technologies and the protection of consumer data. As AI and other data-driven technologies become more prevalent, the ability of regulatory agencies like the FCC to oversee data privacy practices will become increasingly important. The Supreme Court's decision will likely shape the future of data privacy regulation and the balance of power between regulatory bodies and the industries they oversee.