The Federal Communications Commission (FCC) is conducting an investigation into ABC and its parent company, Disney, regarding their practices related to Diversity, Equity, and Inclusion (DEI). This announcement was made by FCC Chair Brendan Carr via social media on Friday. In a formal letter addressed to Disney CEO Bob Iger, Carr expressed his intent to ensure that both Disney and ABC are adhering to FCC regulations concerning equal employment opportunities, particularly in relation to their DEI initiatives.
In his letter, Carr raised concerns that Disney may have engaged in practices that could be considered discriminatory under the guise of promoting diversity. He noted, “For decades, Disney focused on churning out box office and programming successes. But then something changed.” This shift, according to Carr, has led Disney into a series of controversies surrounding its DEI policies.
This investigation marks a significant move in the ongoing crackdown on Diversity, Equity, and Inclusion programs initiated during the Trump administration. The administration has previously taken steps to dismantle DEI efforts within the federal government, including the prohibition of DEI considerations during hiring processes. Now, companies like Disney are facing mounting pressure to reevaluate or entirely abandon their DEI policies.
Carr’s letter further elaborated that the DEI policies implemented by Disney in recent years “infected many aspects of (Disney’s) decisions,” indicating that the entertainment giant has integrated explicit race- and gender-based criteria into its operations. This assertion raises questions about the legality and ethical implications of such practices in hiring and promotion.
In response to the FCC’s investigation, a spokesperson for Disney stated, “We are reviewing the Federal Communications Commission’s letter, and we look forward to engaging with the commission to answer its questions.” This reflects Disney's willingness to cooperate with the FCC as the investigation unfolds.
The Trump administration remains committed to rolling back DEI initiatives across various sectors. Carr, who was appointed by Trump, has made it clear that the FCC may block any mergers and acquisitions involving media companies that promote DEI policies. He expressed in an interview with Bloomberg, “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.”
Typically, federal regulators block corporate mergers only when they pose a threat to competition or lead to increased prices for consumers. The current stance taken by the FCC, however, is unprecedented as it considers human resource policies as a factor in merger approvals. Legal experts have noted that it remains unclear what Carr specifically meant by “invidious” DEI efforts and which programs could be deemed unlawful under current regulations.
The stakes are particularly high for pending and future mergers and acquisitions in the communications sector. Carr mentioned specific cases, such as Paramount’s merger with Skydance and Verizon’s acquisition of Frontier, emphasizing the potential implications of the FCC's inquiry. Additionally, the commission has initiated an investigation into Comcast’s DEI practices, further indicating the broader implications of this trend.
