FCC targets firms alleged to route DJI gear around US drone limits
The agency proposed $25,000 fines for eight companies and demanded answers tied to DJI-related equipment authorizations.
By Hana Yoshida · Markets Reporter
3 min read
The Federal Communications Commission is moving against eight companies that it says failed to answer investigative requests tied to equipment authorizations. The action matters because US radio approvals are a gateway for selling drones, cameras and other wireless devices in the country.
According to an FCC notice cited by The Verge, the agency proposed $25,000 fines for each of the eight companies and gave them until Monday, July 20, to respond to its questions before it considers further steps. The companies named in the FCC action are Cogito Tech, Fixaxo Technology, Lyno Dynamics, Skyhigh Tech, Spatial Hover, SZ Knowact, WaveGo Tech and Xtra Technology.
The Verge reported that several of the companies have been suspected of helping DJI-linked products reach US buyers despite federal restrictions on foreign drone makers. Xtra has been tied by The Verge to the sale of camera products resembling DJI’s devices, while SZ Knowact is described as the company behind Skyrover, a brand The Verge previously reported appeared to be selling DJI-like drones under another name.
The Verge said independent watcher Konrad Iturbe last year described such firms as “DJI front companies.” The FCC fines, according to the agency’s notice, are based on the companies’ failure to respond to earlier letters rather than a final finding on the broader allegations.
Why FCC approval matters
Devices that use radio frequencies generally need FCC authorization before they can be imported, marketed or sold in the United States. That approval covers the radio transmitters inside products such as drones, cameras and connected gadgets.
The Verge reported that on Dec. 22 the FCC added all foreign drone companies to its Covered List, a designation that blocks the agency from issuing equipment authorizations to listed companies because of asserted national security concerns. The Covered List has become a central tool in US efforts to limit the reach of certain foreign communications and surveillance technologies.
The FCC also gave itself authority last year to revoke prior approvals for products that have already cleared the authorization process, The Verge reported. That authority can apply even when a product contains components from a company that later becomes subject to a ban.
Broader pressure on DJI
DJI, the world’s leading drone maker, has faced growing US restrictions across imports and equipment approvals. The Verge has reported on the company’s legal and regulatory fight over the FCC’s actions, including efforts to block new drone imports.
The latest FCC action focuses on companies the agency says did not answer its investigative demands. The Verge also reported that the FCC plans to deauthorize a prominent testing laboratory in China, a move that could further affect how wireless devices connected to Chinese firms obtain US approval.
The immediate deadline is July 20. If the companies do not answer by then, the FCC said it may take additional action.
This story draws on original reporting from The Verge.