��ɫtv

The telecom companies challenged the process as unconstitutional because it gives them little opportunity to tell their side of the story in court. Key justices seemed skeptical, however. “I wonder if, at the end of the day, you're really just talking about a PR problem,” Chief Justice John Roberts said during arguments Tuesday.

The Trump administration defended the process as an essential regulatory tool and argued that it does leave a path to court. But the government also said companies don’t have to pay penalties right away, a concession that amounts to a win for the companies, Justice Brett Kavanaugh said. “It seems like you’ve won on the law going forward one way or the other,” Kavanaugh told an attorney for AT&T and Verizon.

The Supreme Court's conservative majority has limited the power of federal agencies before, including that had given regulators an advantage in court and stripping another agency of a securities fraud. A victory for AT&T and Verizon in this case could have widespread effects for other agencies who use similar enforcement mechanisms, advocates said.

Companies who get notices that they’ve run afoul of FCC regulations now have two options: pay the penalty and then contest it before an appeals court or refuse to pay and wait for a federal lawsuit that could eventually go before a jury. Doug Orvis, a veteran telecom attorney, said neither option is viable, so most companies pay up.

A ruling is expected by late June.