Opinion Affirms Arguments Telnyx Made in its NAL Response to FCC
AUSTIN, TX — Telnyx LLC, a leading provider of real-time communications and connectivity solutions, today applauded Thursday’s opinion from the Fifth Circuit vacating the Federal Communications Commission’s (FCC) $57 million fine against AT&T. The decision followed the Supreme Court’s ruling in SEC v. Jarkesy, ruling that the FCC’s in-house enforcement actions violate the Seventh Amendment of the U.S. Constitution. Telnyx also cited Jarkesy in making the same constitutional argument in its response to the Notice of Apparent Liability (NAL) it received from the FCC in February.
Notably, FCC Commissioner Nathan Simington issued a dissent in the Telnyx enforcement proceeding in which he concluded, with great foresight, that the FCC can no longer pursue enforcement actions involving monetary penalties under Jarkesy.
The Fifth Circuit’s ruling is a significant validation of Telnyx’s position. The court’s opinion mirrors multiple arguments Telnyx raised in its NAL response, including the point that the FCC cannot act as “prosecutor, jury, and judge.”
“This is a landmark victory for Telnyx and the entire telecommunications industry,” said Telnyx CEO David Casem. “The court’s opinion confirms what we’ve long argued—that the FCC’s in-house process for imposing fines, like the one proposed against Telnyx, is patently unconstitutional. Based on this decision, the FCC should immediately rescind the unlawful NAL. The failure to timely respond to the Fifth Circuit’s decision will inevitably lead to more litigation in which Telnyx will undoubtedly prevail.”
The AT&T ruling follows the news earlier this week that the FCC recommended reinstating Telnyx to the Industry Traceback Group (ITG) as a supporting partner.
About Telnyx
Telnyx delivers voice, messaging, fax, and more for mission-critical applications, and is recognized for its proprietary global IP network. Through its extensive suite of communications APIs, Telnyx provides secure, reliable, and high-quality services, enabling customers to build world-class communications solutions.
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