The Federal Communications Commission (FCC) is escalating its enforcement efforts against companies suspected of helping Chinese drone maker DJI bypass a U.S. ban on foreign drone technology. Eight companies have been fined $25,000 each and given a short deadline to respond to the agency's questions, according to official documents. The FCC is also moving to deauthorize a testing laboratory in China that had been used to certify some of the products tied to these companies.

The move signals a more aggressive phase in the U.S. government's broader effort to restrict DJI's access to the American market. Last year, the FCC added all foreign drone companies to its “Covered List,” a designation that blocks the agency from issuing radio frequency authorizations to those firms due to national security concerns. Now, the FCC is targeting what it describes as front companies that may have been set up to evade those restrictions.

Who Are the Eight Companies?

The FCC has named eight companies in its enforcement action: Cogito Tech, Fixaxo Technology, Lyno Dynamics, Skyhigh Tech, Spatial Hover, SZ Knowact, WaveGo Tech, and Xtra Technology. Several of these firms have been previously linked in media reports to DJI's suspected efforts to continue selling its products in the United States under different brand names. WaveGo Tech and SZ Knowact are believed to be connected to the Skyrover brand, which has been marketing drones that appear to be rebranded DJI models. Xtra Technology is known for selling the Xtra Muse, a handheld camera that has been described as virtually identical to the DJI Osmo Pocket 3.

All eight companies are being fined because they failed to respond to the FCC's initial letters of inquiry. The FCC had asked each company whether they were marketing radio equipment in the United States that belongs on the Covered List. As of the announcement, not a single company had replied. The FCC is now requiring them to answer by Monday, July 20th — a window of just 10 calendar days — before taking further action.

Background of the Foreign Drone Ban

The United States has grown increasingly wary of drone technology manufactured by companies based in countries considered foreign adversaries. DJI, which is headquartered in Shenzhen, China, dominates the global consumer and commercial drone market. U.S. officials have expressed concerns that DJI drones could be used for espionage or data collection that threatens national security. While DJI has repeatedly denied these allegations, the U.S. government has moved to restrict its presence in the American market.

In December of last year, the FCC formally placed all foreign drone companies on its Covered List. This designation prevents the FCC from granting new equipment authorizations for radio frequency devices made by those companies. Without FCC authorization, a device cannot be legally imported, sold, or marketed in the United States. The rule applies to drones themselves as well as to any gadget that contains a radio transmitter from a banned company.

The FCC also gave itself new powers to revoke authorizations retroactively. That means even products that were already certified and on sale could be banned if they contain components from a covered company. The agency can target not just drones but any device with a covered radio module, including cameras, smartphones, or other electronics.

The Xtra and Skyrover Cases

The FCC's action is the latest development in a story that began with investigative reporting last year. Xtra Technology is perhaps the most brazen example of a suspected front company. The company has been promoting influencer videos that compare the Xtra Muse favorably to the DJI Osmo Pocket 3. When journalists tested the Xtra camera against the DJI model, they found the two devices to be so identical that calling the Xtra a clone seemed generous — it was essentially the same hardware with a different name.

Xtra is also currently taking $20 deposits for an “Xtra Muse 2 Pro” that appears to be a disguised version of the DJI Pocket 4 Pro. The company's marketing uses phrases like “From Pocket to Pro,” which many interpreted as a wink-wink acknowledgment of the product's true origin. The device had been submitted for FCC certification through a separate filing, but that filing has since disappeared from the FCC's public database, showing a message instead of the usual authorization documents. The same is true for the DJI Osmo Pocket 4 Pro's own filings.

Skyrover is another brand that has raised suspicion. It has been selling drones that appear to be repackaged DJI models, with identical specs and design. The FCC's actions suggest that the agency is treating these brands as extensions of DJI, despite the lack of formal registration linking them to the Chinese company.

FCC Targets Testing Lab

In a related move, the FCC announced its intent to deauthorize SGS-CTST Standards Technical Services Co., a testing laboratory in Shenzhen, China, that had been accredited to perform FCC certification testing. The lab's accreditation is being revoked because of its ownership ties to entities controlled by the Chinese government. SGS Shenzhen is subject to 15% ownership by China Standard Science & Technology Group Company Limited, which itself is wholly-owned by the China National Institute of Standardization.

The U.S. Department of Commerce has determined, based on intelligence from multiple Executive Branch sources, that the People's Republic of China is a foreign adversary. The FCC's decision to revoke the lab's status means that any certifications issued by SGS may no longer be accepted for future product authorizations. This could have broad implications for companies that used this lab for FCC compliance testing, particularly those connected to DJI or its front companies.

The DJI Osmo Pocket 4 and 4 Pro were both certified using SGS-CTST as the test lab. So were products from WaveGo Tech. The removal of this lab's accreditation could invalidate or complicate the certification of those devices, adding another layer of legal jeopardy for the companies involved.

Deeper Implications for DJI and the Drone Market

DJI's strategy of using front companies may have allowed it to temporarily continue selling its products in the U.S., but the FCC's latest actions show that the agency is prepared to uncover and penalize such schemes. The fines are relatively small — $25,000 per company — but they are only the beginning. If the companies fail to respond by the July 20th deadline, the FCC could impose additional penalties, revoke existing authorizations, or issue cease-and-desist orders that would force the products off the market.

The FCC's targeting of testing labs is also significant. By cutting off the certification pipeline, the agency can prevent future products from gaining legal entry into the U.S. market, even if they are submitted under a different brand name. This makes it harder for DJI to hide behind shell companies and other corporate structures.

For U.S. consumers, the implications are clear: DJI's popular cameras and drones may become increasingly difficult to purchase legally. The Osmo Pocket series, in particular, has been a favorite among creators for its compact size and high-quality video. If the FCC bans these devices, they could disappear from store shelves, and existing units might lose their authorized status, potentially affecting software updates, warranty support, and resale value.

The broader drone market could also feel the ripple effects. DJI's dominance has kept prices competitive and pushed innovation in both hardware and software. A stricter enforcement regime could raise barriers for other Chinese drone makers as well, as the U.S. government continues to view the sector through a national security lens.

What Happens Next

As of now, DJI has not publicly responded to the FCC's actions. The eight companies have until July 20th to provide the information the FCC has requested. Their responses — or lack thereof — will determine whether the FCC escalates its enforcement. The agency has made clear that it is prepared to take further action, which could include orders barring the import, sale, and marketing of the products in question.

The FCC's investigation is also likely to continue beyond these eight companies. The agency has been gathering information from various sources, including media reports and industry watchers who have tracked DJI's front company tactics. The deauthorization of the SGS test lab is another sign that the FCC is pursuing the issue from multiple angles, aiming to close every avenue through which DJI might evade the ban.

This enforcement effort comes amid escalating tensions between the United States and China over technology, trade, and security. The drone ban is part of a broader set of restrictions that have also targeted Chinese telecommunications equipment, semiconductors, and social media platforms. For DJI, the future of its U.S. business may depend on its ability to appeal these actions or negotiate a resolution — but with the FCC showing its teeth, that future looks increasingly uncertain.

Source:The Verge News