The Federal Communications Commission (FCC) is escalating its crackdown on Chinese drone manufacturer DJI, targeting eight companies suspected of acting as front companies to circumvent the United States’ foreign drone ban. In a series of enforcement actions, the FCC has fined each of these companies $25,000 and demanded responses within 10 calendar days, by July 20, 2026. The move comes after months of investigation and follows reporting by The Verge that exposed how DJI appears to be using shell brands like Xtra and Skyrover to continue selling popular camera and drone products in the US market.

Background of the US DJI Ban

The United States government has increasingly viewed DJI, the world’s largest drone manufacturer, as a national security risk. Concerns center on the potential for Chinese government backdoors, data collection, and the use of DJI equipment in sensitive military or government operations. In December 2022, the FCC added all foreign drone companies to its Covered List, effectively barring the agency from issuing new radio authorization for any drone-related equipment from those entities. The list was expanded on December 22, 2025, to include all foreign drone companies, not just those from China. DJI, being the most prominent Chinese drone maker, was directly affected.

Further, in 2024, the FCC gave itself the power to retroactively ban products that had already received authorization, even if those products only contained a component from a banned company. This means that a camera with a DJI radio transmitter could be removed from sale. The ban also affects authorization by testing labs: the FCC requires devices sold in the US with radio transmitters to be certified by accredited labs. If a lab is found to be owned or influenced by a foreign adversary, the FCC can revoke its accreditation.

The Front Companies Under Investigation

The FCC is investigating eight companies that it suspects are marketing radio equipment that belongs on the Covered List. These companies include Cogito Tech, Fixaxo Technology, Lyno Dynamics, Skyhigh Tech, Spatial Hover, SZ Knowact, WaveGo Tech (both behind the Skyrover brand), and Xtra Technology. All have failed to respond to FCC letters asking whether they are selling products that originate from DJI or other banned entities.

Xtra Technology is perhaps the most brazen. The company markets the Xtra Muse, a camera that is virtually identical to the DJI Osmo Pocket 3. The Verge tested both and found they were indistinguishable. Xtra is also taking $20 deposits for an “Xtra Muse 2 Pro,” which is widely believed to be a re-badged DJI Pocket 4 Pro. The marketing uses the tagline “From Pocket to Pro,” a clear reference to DJI’s own product line. Despite this, DJI has refused to confirm any relationship with Xtra.

Skyrover, another brand, also appears to sell DJI drones under a different name. The FCC investigation reveals that WaveGo Tech, one of the companies behind Skyrover, used the same Chinese testing lab that DJI used for its Osmo Pocket 4 Pro certification.

FCC Action Against Test Labs

On May 11, 2026, the FCC announced its intent to deauthorize SGS-CTST Standards Technical Services Co., Ltd. (SGS Shenzhen) as an accredited test lab. The lab is 15% owned by China Standard Science & Technology Group Company Limited, which is wholly owned by the China National Institute of Standardization, an entity under the Chinese government. The US Department of Commerce has designated the People’s Republic of China as a foreign adversary, and the FCC concluded that SGS Shenzhen’s ownership structure poses a national security risk.

This lab had certified both the DJI Osmo Pocket 4 Pro (in November 2025) and Xtra’s equivalent product (in June 2026). Notably, neither set of documents now appears in the FCC’s public search engine, indicating they may have been withdrawn or removed. The FCC’s move against the lab signals a broader effort to choke the supply chain that allows DJI products to enter the US market.

Implications for Consumers and the Drone Industry

For US consumers, the crackdown means that popular DJI products like the Osmo Pocket series and Mavic drones may become increasingly difficult to purchase legitimately. Skyrover and Xtra devices, which were marketed as alternatives, will likely disappear from store shelves as well. The fines are relatively small ($25,000 each), but the 10-day deadline for response indicates the FCC is prepared to escalate enforcement, possibly leading to seizure of inventory or further penalties.

The drone industry, already squeezed by federal bans on Chinese-made drones in government and military use, now faces additional hurdles in the consumer market. Smaller retailers and importers may be caught in the crossfire, as they could face liability for selling products that the FCC later deems unauthorized.

Historical Context of the DJI Ban

The tension between DJI and the US government has been building for years. In 2020, the Department of Defense added DJI to the “Chinese Communist Military Companies” list, though it was later removed. In 2021, Congress passed the NDAA, which prohibits the use of DJI drones by federal agencies except in limited circumstances. The FCC’s December 2025 expansion of the Covered List was the most aggressive step yet, effectively ending all new DJI product authorizations.

DJI's response has been to attempt to bypass the regulations. The company has denied operating front companies, but investigations by journalists and now the FCC suggest otherwise. The Verge's earlier report, cited by the FCC in its investigation, demonstrated that the Xtra Muse was “too identical to even be considered a clone.” The FCC is using that reporting as evidence of possible evasion.

The deauthorization of SGS Shenzhen is also significant because it affects many other Chinese electronics manufacturers who rely on the same testing lab. The FCC has stated that it will review the validity of all certifications issued by that lab going forward, which could create a backlog for new products seeking FCC approval.

What’s Next?

The eight companies have until July 20, 2026, to respond. If they fail to do so, the FCC may issue additional fines, revoke their authorizations, and block their products from import. Meanwhile, the FCC is also investigating other potential front companies and testing labs. The agency has not publicly disclosed how many companies are under scrutiny, but it is clear that the net is tightening.

DJI has not commented on the FCC’s actions, though the company previously declined to answer questions about its relationships with Xtra and Skyrover. Without a response, the FCC may move to deauthorize all products associated with these companies. This could include hundreds of thousands of devices already sold to US consumers, though retroactive bans are legally complex and have not yet been fully tested in court.

The situation also highlights the broader geopolitical tensions between the US and China over technology. Drones are just one front in a larger battle that includes telecommunications equipment (Huawei), semiconductors, and artificial intelligence. The FCC’s move against DJI is part of a sustained effort to reduce the US’s reliance on Chinese technology, with national security as the primary justification.

Source: The Verge News