Fcc fines fail to hurt carriers, leaving consumers to pay the price

The Supreme Court's recent ruling against AT&T and Verizon over mishandled location data has ended one chapter, but consumer advocates fear the wireless giants will continue to disregard privacy concerns.

A $100 million fine, a drop in the bucket

When the FCC slapped AT&T with a $57 million penalty and Verizon with $47 million, many expected it would be a harsh blow. But as the numbers are crunched against the carriers' massive annual revenues, the fines seem more like a slap on the wrist.

AT&T's penalty amounts to roughly four hours of Business, while Verizon's is similarly insignificant next to their $130 billion revenue. Combined, the fines total over $100 million, a figure that pales in comparison to the carriers' coffers.

The sentiment echoed on Reddit's r/ATT, where users did the same math, concluding the fines were little more than a rounding error for the carriers.

Experts warn that the companies may simply pass the costs back to consumers through new fees or rate hikes, leaving those who never agreed to have their location sold footing the bill.

The FCC's authority to fine carriers is now harder to challenge in court, but without tangible consequences for the companies, accountability appears to be non-existent for now.