FCC Chair Threatens to Block M&A for Companies That Embrace DEI Policies

Yahoo

21-03-2025

In the Trump administration's latest crackdown on diversity, equity and inclusion, FCC chairman Brendan Carr has put companies who promote 'invidious' DEI policies on notice, warning that the agency is prepared to block any merger and acquisition proposals they may make.
'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,' Carr told Bloomberg in an interview on Friday.
'We can only under the statute move forward and approve a transaction if we find that doing so serves the public interest,' he continued. '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.'
The latest threat comes as the agency has already opened investigations into Comcast and NBCUniversal and Verizon over their DEI practices. The former is preparing to spin off its cable network portfolio by the end of 2025, while the latter has entered into a deal to acquire Frontier Communications that is expected to close by the first quarter of 2026.
Carr also reinstated 'news distortion' complaints against WPVI-TV over ABC's fact-checking of Trump during a presidential debate and WCBS-TV over the editing of a '60 Minutes' interview with former Vice President Kamala Harris and a complaint against WNBC-TV alleging Harris' appearance on 'Saturday Night Live' violated the agency's equal time rule. The FCC is allowing the public to weigh in on Harris' '60 Minutes' interview video and transcript it requested as part of its investigation into WCBS-TV and as it reviews the pending $8 billion Skydance-Paramount merger's required transfer of broadcast licenses.
Additionally, Carr is investigating NPR and PBS for alleged violations of the agency's underwriting rules for noncommercial broadcasters and KCBS Radio for allegedly violating public interest obligations for describing an immigration raid during one of its news broadcasts.
In a letter to the agency, Democratic Sen. Richard Blumenthal slammed Carr for singling out media broadcasters that 'faced the wrath of President Trump during his presidential campaign, including actual litigation or outright threats of investigations in retaliation for perceived negative coverage.'
He noted that the 'exclusive targeting to the apparent benefit of the President' is further reflected by Carr's decision to not renew a news distortion complaint against a Fox TV station nor launch any investigation into News Corp. around its diversity, equity and inclusion policies.
'The Commission's investigations appear predicated on dubious legal theories that deviate from the FCC's public guidance, rules, and past enforcement actions, raising the question of whether the FCC is operating under a new set of standards,' the letter added. 'Carr's vexatious investigation of opponents of President Trump represents a threat to the First Amendment and inflicts upon newsrooms, affiliate groups, local media, nonprofit organizations and religious broadcasters an ever-looming risk of retaliatory federal investigations for protected speech.'
The Senate's Permanent Subcommittee on Investigations has set a deadline of March 26 for the FCC to turn over information and records related to its investigations. Representatives for the FCC did not immediately return TheWrap's request for comment.
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