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The FCC is cracking down on DJI tech that dodged the foreign drone ban
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- DeepHorus
The Federal Communications Commission (FCC) is cracking down on eight companies suspected of serving as front operations for Chinese drone maker DJI, fining each $25,000 for failing to respond to inquiries about their radio equipment. The companies have until Monday, July 20th—just 10 calendar days—to answer the FCC's questions or face further penalties. This action marks a significant escalation in the FCC's efforts to enforce the foreign drone ban imposed last year.
In December 2022, the FCC added all foreign drone companies to its Covered List, citing national security risks, which blocks them from receiving equipment authorizations to sell in the United States. The agency also retroactively gained the power to ban products already authorized if they contain components from banned entities. DJI, a leading Chinese drone manufacturer, has been suspected of circumventing these restrictions through third-party brands like Xtra and Skyrover, which market seemingly identical products.
The eight companies fined include Cogito Tech, Fixaxo Technology, Lyno Dynamics, Skyhigh Tech, Spatial Hover, SZ Knowact, WaveGo Tech, and Xtra Technology. None have responded to the FCC's initial letters. Additionally, the FCC announced plans to deauthorize SGS-CTST Standards Technical Services Co., a testing lab in China that certified several of these products, due to ownership ties to a Chinese state-owned entity.
The crackdown has immediate implications for products already on the market. For instance, Xtra's Muse camera, which is nearly identical to DJI's Osmo Pocket 3, may face removal from U.S. shelves. FCC filings for DJI's Osmo Pocket 4 Pro and Xtra's devices have become inaccessible in the agency's database, showing a 'not found' error, suggesting possible revocation of authorization.
Industry observers have long suspected DJI of using front companies. Last year, The Verge documented how Xtra's cameras are indistinguishable from DJI's, with influencer marketing using phrases like 'From Pocket to Pro' to hint at the connection. DJI declined to confirm or deny its involvement with these firms. The FCC's investigation appears to credit such reporting.
Looking ahead, the FCC's deadline gives these companies 10 days to respond, after which the agency may impose further sanctions, including import bans or fines. The deauthorization of SGS Testing Lab could disrupt future certifications for Chinese tech firms. This action signals a stricter enforcement of the drone ban, potentially reshaping the U.S. drone market and limiting DJI's presence.
