The Federal Communications Commission (FCC) is escalating its enforcement against companies suspected of enabling Chinese drone manufacturer DJI to bypass a U.S. ban on foreign drones. The agency has fined eight firms $25,000 each and announced plans to deauthorize a testing laboratory in China, according to documents released on July 10, 2026.

These actions stem from a long-running effort to prevent DJI, the world's largest drone maker, from selling its products in the United States after the FCC added all foreign drone companies to its Covered List in December 2025. The Covered List prevents the FCC from granting equipment authorizations to entities deemed national security risks. DJI, which is based in Shenzhen, China, has been a target of U.S. sanctions and bans since the Trump administration, with concerns escalating over data security and military ties.

The eight companies under investigation include Cogito Tech, Fixaxo Technology, Lyno Dynamics, Skyhigh Tech, Spatial Hover, SZ Knowact, WaveGo Tech, and Xtra Technology. The FCC says these companies failed to respond to letters inquiring whether they are marketing radio equipment in the U.S. that should be on the Covered List. Each fine is accompanied by a deadline of July 20, 2026—just 10 calendar days—to provide answers or face further action.

Xtra Technology, which sells the Xtra Muse camera, has been particularly prominent. In 2025, news reports highlighted that the Xtra Muse appeared to be an exact copy of DJI's Osmo Pocket 3, down to the hardware, software, and user interface. The company even marketed an 'Xtra Muse 2 Pro' that looked identical to the DJI Osmo Pocket 4 Pro. Skyrover, another brand, has been accused of selling rebadged DJI drones, with its products featuring the same design, specifications, and even firmware.

The FCC's investigation also targets SGS-CTST Standards Technical Services Co., a Chinese testing lab that helped certify several of these products. The agency announced its intent to deauthorize the lab due to ownership ties to the Chinese government. SGS Shenzhen is 15% owned by China Standard Science & Technology Group, which is wholly owned by the China National Institute of Standardization—a government entity. The FCC cited a U.S. Department of Commerce determination that the People's Republic of China is a foreign adversary.

This lab had worked on FCC certifications for DJI's Osmo Pocket 4 and 4 Pro, as well as WaveGo Tech products. The certifications for these devices have been removed from the FCC's database, with a message stating the documents are no longer available.

The crackdown comes amid a broader push to secure U.S. supply chains from foreign adversaries. In 2024, the FCC gave itself the authority to retroactively ban products already certified, including those containing components from banned entities. This means any gadget with a DJI radio transmitter could be banned from sale, import, or marketing in the U.S., even if it's not a drone.

DJI has not responded to requests for comment on the FCC's latest actions. The company has previously denied any efforts to circumvent U.S. sanctions, but the evidence of identical hardware and software has been mounting.

The eight fined companies now face a pivotal moment. If they fail to comply with the FCC's demands, they could face additional fines, import restrictions, or even criminal referrals. The FCC's move also sends a strong signal to other companies that might consider acting as front entities for banned manufacturers.

Background on the DJI ban: The FCC's Covered List was established under the Secure and Trusted Communications Networks Act of 2019, aimed at blocking equipment from companies like Huawei and ZTE. In December 2025, the list was expanded to include foreign drone companies, a move that directly targeted DJI. The company had previously tried to argue that its products were safe, but concerns over data transmission to servers in China and the company's ties to the Chinese government proved decisive.

DJI's market share in the U.S. had been declining after the ban, but front companies allowed continued sales. The Xtra Muse, for instance, was widely available on Amazon and other retailers until recently. The FCC's actions may finally close that loophole.

The agency's investigation also highlighted the role of test labs in the certification process. By deauthorizing SGS Shenzhen, the FCC aims to prevent future circumventions by ensuring that only labs with no ties to foreign adversaries can certify equipment for U.S. sale.

The FCC's move has drawn praise from security experts who have long called for stricter enforcement. 'This is a clear message that the U.S. is serious about protecting national security,' said one analyst. 'Front companies are not a new trick, but now the FCC has the tools and the will to shut them down.'

However, some critics argue that the fines may not be enough to deter determined actors. The $25,000 fine is relatively small compared to the profits DJI might have made through these sales. But the FCC's ability to revoke certifications and ban products outright could have a much bigger impact.

The story also underscores the difficulty of enforcing technology bans in a globalized world. While the U.S. government can block direct imports, creative intermediaries often find ways around restrictions. The DJI case is a textbook example of how companies adapt to sanctions.

As the July 20 deadline approaches, all eyes will be on the eight companies to see if they respond. If they do, the FCC may gain valuable intelligence on the extent of DJI's front company network. If they don't, further fines and legal action are likely.

In the meantime, consumers who purchased Xtra or Skyrover products may face uncertainty. The FCC has the authority to compel recalls of devices that are deemed non-compliant, though such actions are rare. The agency has not yet indicated whether it will seek recalls in this case.

The FCC's crackdown is part of a larger pattern of U.S. agencies tightening controls on Chinese technology. The Commerce Department, the Defense Department, and the Treasury have all taken steps to limit Chinese influence in critical sectors. Drones, given their civilian and military dual-use nature, remain a high priority.

The long-term impact on DJI's U.S. operations remains to be seen. The company has already seen its market share eroded by competitors like Autel Robotics and Skydio. The loss of front company sales could further hurt its revenue, though DJI remains dominant in global markets.

The case also highlights the importance of journalistic investigations in uncovering potential violations. The FCC credited a 2025 report by The Verge that identified Xtra and Skyrover as likely front companies. Such reporting can prompt government action, as seen here.

Looking ahead, the FCC is expected to continue its scrutiny of other potential front companies. The agency has not named any additional targets, but the investigation is ongoing. The eight fined companies may be just the tip of the iceberg.

For now, the message from the FCC is clear: attempts to dodge the foreign drone ban will not be tolerated. The agency is using all its tools to enforce the law, from fines to lab deauthorizations. Whether that will be enough to stop DJI remains an open question.

Source: The Verge News