FCC Imposes Sanctions on 8 DJI Proxy Companies, Strengthens Drone Ban

The U.S. Federal Communications Commission (FCC) announced on July 10, 2026, that it will impose a $25,000 fine on each of eight “front companies” allegedly acting as intermediaries in bringing products from Chinese drone giant DJI into the U.S. market. These companies were sanctioned for failing to respond to FCC inquiries. The deadline for responses is set for July 20, after which further measures are expected to be taken.

According to Sean Hollister’s report in The Verge, the FCC had questioned these companies regarding whether they were selling wireless equipment in the U.S. and whether those products were listed on the “Covered List,” which includes entities posing national security risks. None of the companies provided a response.

Companies Facing Sanctions

The eight companies penalized are:

• Cogito Tech
• Fixaxo Technology
• Lyno Dynamics
• Skyhigh Tech
• Spatial Hover
• SZ Knowact (operator of the Skyrover brand)
• WaveGo Tech
• Xtra Technology

Among these, Xtra and Skyrover were previously reported by The Verge last year to be suspected of distributing disguised DJI products in the U.S. market. Xtra was selling cameras identical in appearance and specifications to DJI’s Osmo Pocket 3, while Skyrover was allegedly rebranding DJI drones and selling them under its own name.

The Covered List and Regulatory Framework

On December 22, 2024, the FCC added all foreign drone companies to the “Covered List.” Products from companies on this list are considered national security risks and are ineligible for FCC wireless equipment certification.

Last year, the FCC expanded its authority, enabling it to retroactively ban certified products. This extended the prohibition to devices such as cameras with built-in DJI wireless transmitters, in addition to drones themselves. Consequently, these products may no longer be sold, imported, or marketed within the U.S.

Plans to Revoke Certification of a Chinese

Test Lab

In addition to the fines against the eight companies, the FCC revealed plans to revoke the certification authority of a Chinese test lab suspected of issuing fraudulent certifications for DJI products.

Last year, DJI neither confirmed nor denied its relationship with Xtra and Skyrover when queried by The Verge. The company has not publicly acknowledged any connections with these firms.

Background and Industry Impact

Since 2020, the U.S. government has prohibited the use of DJI drones by federal agencies such as the Department of Defense, the Department of the Interior, and the Federal Aviation Administration (FAA). In 2024, the FCC strengthened the ban by targeting the certification level, effectively pushing DJI products out of the U.S. market.

This move is part of broader U.S. concerns over Chinese technology products. Similar to TikTok and Huawei, DJI’s ties to the Chinese government have come under scrutiny. DJI has repeatedly asserted that its products are for civilian use and that it does not operate under directives from the Chinese government.

The latest FCC measures indicate a further acceleration of DJI’s retreat from the U.S. market. The company has already scaled back its consumer drone sales in the U.S., and its industrial drone business is likely to face similar challenges.

DJI drones have been widely used in U.S. industries such as firefighting, law enforcement, agriculture, and construction. These sectors now face the challenge of finding alternatives to DJI products. U.S.-based Skydio and China-based Autel Robotics have been cited as potential alternatives, but few products match DJI’s performance.

Editorial Opinion

In the short term, the FCC’s fines and ongoing investigations will likely render the loophole of using DJI proxy companies nonviable. If the July 20 deadline passes without responses, stricter sanctions, including product seizures and sales bans, could follow. U.S. end-users in sectors like agriculture and construction will face supply chain disruptions.

In the long term, this development symbolizes the increasing technological separation between the U.S. and China. The regulation of civilian products like drones in a national security context marks a significant precedent. This trend, part of a broader “de-Chinafication of technology” movement seen in semiconductors and AI, may also impact allied countries like Japan.

For Japanese drone manufacturers, the decreasing barriers to entering the U.S. market offer opportunities. However, dependence on Chinese-made components may increasingly pose risks.

The editorial team believes the focus should not only be on the effectiveness of FCC regulations but also on how these sanctions will alter Chinese companies’ technological development and competitiveness in international markets. If Chinese firms pivot toward domestic and emerging markets, their products could become even more affordable and feature-rich.

References

• “The FCC is cracking down on DJI tech that dodged the foreign drone ban”, by Sean Hollister — The Verge, 2026-07-10T22:35:18.000Z (ARR)
• Source URL: https://www.theverge.com/policy/964342/fcc-crack-down-dji-front-companies-xtra-skyrover-sgs-lab