Media and telecommunication companies that promote diversity, equity, and inclusion (DEI) ideology will face increased scrutiny from the U.S. Federal Communications Commission (FCC), with the agency potentially moving to block license transfers and acquisitions in accordance with President Donald J. Trump’s executive order barring DEI policies across the federal government. FCC Chairman Brendan Carr says the agency will no longer approve merger and acquisition proposals from companies that promote “invidious” DEI policies that result in unfair discrimination.
“Any businesses that are looking for FCC approval, I would encourage them to get busy ending any sort of their invidious forms of DEI discrimination,” Chairman Carr said in a recent media interview. “We can only, under the statute, move forward and approve a transaction if we find that doing so serves the public interest.”
“If there’s businesses out there that are still promoting invidious forms of DEI discrimination, I really don’t see a path forward where the FCC could reach the conclusion that approving the transaction is going to be in the public interest,” Carr added.
The new FCC regulatory position could impact several major pending media and telecommunications deals unless the companies involved drop their DEI policies and programs. Notably, the FCC is currently reviewing a merger between Paramount Global—the parent company of CBS News—and Skydance, a media production and finance company. Carr’s agency is also examining Verizon’s $20 billion deal to acquire Frontier Communications and T-Mobile’s $4.4 billion acquisition of U.S. Cellular’s wireless operations.
Already, Chairman Carr has warned Verizon that continuing its DEI policies violates Trump administration policies and could jeopardize its deal to purchase Frontier.
Meanwhile, telecommunications giant AT&T announced it had begun the process of ending its DEI programs last month.