DJI sues U.S. Federal Communications Commission

DJI sues U.S. Federal Communications Commission

DJI Challenges U.S. Government Designations Amid Regulatory Scrutiny

DJI, the world’s largest civilian drone manufacturer, continues to contest U.S. government actions that restrict its access to federal contracts and market opportunities. Following a federal court's upholding of the Department of Defense's (DOD) designation of DJI as a "Chinese Military Company" under the National Defense Authorization Act (NDAA), the company has filed an appeal with the U.S. Court of Appeals for the District of Columbia Circuit. The DOD's decision, which bars federal agencies from purchasing DJI products, has also been compounded by the Federal Communications Commission's recent ban on new sales of foreign-made drones, including DJI models, under national security concerns.

The DOD's designation, upheld in September 2025, cited DJI's recognition as a National Enterprise Technology Center (NETC) by China's National Development and Reform Commission and the dual-use potential of its technology as justification. While the court rejected claims that DJI is owned or controlled by the Chinese Communist Party, it affirmed the DOD's authority to link the company to China's military-civil fusion strategy. DJI argues that the ruling's reliance on NETC status and dual-use arguments lacks sufficient evidence to warrant a military designation, emphasizing its independence and safeguards against misuse.

Separately, the FCC's December 2025 rule added foreign-made drones to its Covered List of national security risks, effectively banning new sales of DJI products in the U.S. market. The agency cited concerns over espionage and data exfiltration, particularly given DJI's dominance in the global drone market. While existing users may continue operating pre-approved devices, the ban limits future purchases and repairs, potentially disrupting industries reliant on DJI technology.

DJI maintains that its products are designed for civilian use and have never been marketed for military applications. The company has emphasized compliance measures, including geofencing and end-user agreements, to prevent misuse. However, the combined impact of the DOD's designation and FCC's ban has created significant operational and reputational risks for DJI in the U.S.

The outcome of DJI's appeal could set a precedent for how U.S. agencies apply national security criteria to foreign firms. If the court rules in favor of the DOD, it may reinforce the government's authority to restrict companies under the NDAA, while a reversal could prompt stricter evidentiary standards for such designations. For now, the regulatory landscape remains uncertain, with broader implications for U.S.-China tech relations and the drone industry.