U.S. Supreme Court Backs FCC & SEC In Two Regulatory Cases

The Supreme Court of the United States has ruled in favour of the Federal Communications Commission (FCC) and the Securities and Exchange Commission (SEC) in two separate cases, upholding key regulatory powers while reaffirming limits established in earlier decisions.

In an 8-1 ruling, the court rejected a challenge by AT&T and Verizon against the FCC’s enforcement framework for imposing fines. The court held that the agency’s process did not violate constitutional jury trial rights, while noting that companies retain the right to challenge penalties in court.

In a separate unanimous decision, the court upheld the SEC’s authority to seek disgorgement of profits obtained through unlawful conduct. The ruling rejected an attempt to require the regulator to prove direct financial harm to victims before recovering such gains.

The decisions provide support for the enforcement powers of federal regulators at a time when several recent court rulings have imposed limits on agency authority in the United States.