FCC TARGETS DJI SHELL COMPANIES EVADING DRONE BAN

DJI, the Chinese drone manufacturer, faces a U.S. ban on direct sales. To maintain market presence, the company is suspected of operating shell companies that rebrand and sell its products domestically. Xtra sells DJI's popular handheld cameras, while Skyrover markets drones bearing striking similarities to DJI models. Security researcher Konrad Iturbe identified these as "DJI front companies" last year. The FCC enforcement action marks the first significant regulatory response to this workaround strategy. The agency is investigating whether these entities violate the intent of the foreign drone restrictions imposed due to national security concerns. The ban, enacted amid U.S.-China tensions, blocks DJI products from federal procurement and restricts consumer access. By operating subsidiary brands, DJI has effectively maintained its U.S. market presence despite the prohibition. The FCC's actions could force disclosure of ownership structures and potentially halt sales of affected products.