The Federal Communications Commission (FCC) is intensifying its enforcement against companies suspected of acting as front operations for DJI, the Chinese drone giant that has been on the US government’s radar for national security concerns. In a significant move announced today, the FCC is fining eight companies $25,000 each for failing to respond to agency letters regarding the sale and marketing of radio equipment that may violate the foreign drone ban. The companies have until Monday, July 20th—a mere ten calendar days—to answer the FCC’s questions before further actions are taken.
The Eight Companies Under Investigation
The targeted firms include Cogito Tech, Fixaxo Technology, Lyno Dynamics, Skyhigh Tech, Spatial Hover, SZ Knowact, WaveGo Tech, and Xtra Technology. Among these, WaveGo Tech and SZ Knowact are believed to be behind the Skyrover brand, while Xtra Technology is known for marketing the Xtra Muse camera, which bears a striking resemblance to DJI’s Osmo Pocket 3. According to FCC documents, all eight companies have been unresponsive to earlier inquiries about whether they are importing or selling radio equipment that falls under the agency’s “Covered List”—a list of entities deemed to pose a threat to national security.
The fines come after months of investigative reporting by The Verge and independent researchers, who flagged that these companies were essentially selling DJI products under different names, thereby circumventing the ban. The FCC’s action marks the first large-scale crackdown on what observers have called “DJI front companies.”
Background: The DJI Ban and Its Escalation
The United States has long viewed DJI as a potential security risk due to its ties to the Chinese government. In December 2025, the FCC placed all foreign drone manufacturers on its “Covered List,” effectively blocking them from receiving new authorizations to sell radio equipment in the US. That ban was expanded retroactively in early 2026, giving the FCC power to deauthorize products even if they had already passed through the certification process. This means that any device containing a radio transmitter from a banned company—including components like those used in DJI cameras and drones—could be barred from import, sale, and marketing.
DJI dominates the global consumer and enterprise drone market, with an estimated 70% share in the US alone. The company has long denied allegations of espionage, but the US government has persisted, citing risks of data leakage and surveillance. The current crackdown is part of a broader effort to sever US supply chains from Chinese technology firms linked to the Communist Party.
The Role of Testing Labs
In addition to fining the eight companies, the FCC has announced its intention to deauthorize the testing lab SGS-CTST Standards Technical Services Co., Ltd. (SGS Shenzhen) as an accredited test lab. The lab has been used by both DJI and several of the suspected front companies, including WaveGo Tech, to certify their products for FCC compliance. According to the FCC, SGS Shenzhen is subject to 15% ownership by China Standard Science & Technology Group Company Limited, which is wholly owned by the China National Institute of Standardization—an entity controlled by the Chinese government. The US Department of Commerce has designated China as a foreign adversary, making the lab's involvement a national security issue.
The move to deauthorize SGS Shenzhen is unprecedented in the FCC’s history. It signals that the agency will not only go after companies that sell unauthorized equipment but also the infrastructure that helps them gain approvals. This could have a chilling effect on other Chinese testing labs operating in the US market.
Xtra Muse: The Most Brazen Front
Among the companies named, Xtra Technology stands out as the most blatant. The company markets the Xtra Muse, a handheld gimbal camera that is virtually identical to DJI’s Osmo Pocket 3. The Verge previously tested the Xtra Muse and found it “too identical to even be considered a clone.” Xtra has even promoted influencer videos that compare the Muse favorably to DJI’s product, using catchphrases like “From Pocket to Pro” to hint at its origin. The company is currently taking $20 deposits for an “Xtra Muse 2 Pro,” which appears to be a rebranded version of DJI’s unreleased Osmo Pocket 4 Pro.
DJI itself managed to secure FCC authorization for the Osmo Pocket 4 Pro on November 26, 2025, just days before the ban took effect. Xtra also obtained authorization for its version on June 17, 2026. However, both sets of documents have disappeared from the FCC’s public database, with users receiving an error message when trying to access them. This suggests the FCC has already begun to retroactively revoke authorizations.
Market and Legal Implications
The FCC’s actions have far-reaching implications. For the eight companies, failing to respond could lead to fines of up to $100,000 per violation, and potentially criminal charges for import fraud. For DJI, the loss of these distribution channels could severely hamper its ability to sell products in the US, a market that accounts for roughly 30% of its revenue. The company has not commented on the FCC’s latest moves.
The drone industry as a whole is watching closely. Many US drone operators rely on DJI products for everything from aerial photography to agriculture and construction. If the crackdown intensifies, it could force operators to switch to alternative platforms, such as those from US-based companies like Skydio or Autel Robotics. However, those alternatives often come with higher costs and fewer features.
What’s Next?
The FCC has given the eight companies until July 20 to respond. If they fail to do so, the agency can impose additional penalties, including revoking their authorizations and forcing them to recall products already sold. The deauthorization of SGS Shenzhen will likely take several months but will effectively block any new products from that lab from entering the US market.
Meanwhile, investigators are continuing to search for other potential front companies. The FCC’s enforcement bureau has indicated that it is following leads from multiple sources, including consumer complaints and whistleblowers. The outcome of this case could set a precedent for how the US handles technology imports from adversaries in the future.
Source:The Verge News