The Chairman of the Federal Communications Commission on Friday said the agency is willing to hold up deals involving television broadcasters and other regulated industries if companies seek approval for transactions while affirming so-called “DEI” policies.
Those policies — “DEI” stands for “diversity, equity and inclusiveness” — have become popular among commercial enterprises over the last few years as a way to ensure groups who have been historically underrepresented in corporate America have a fair shake at business and job opportunities.
DEI initiatives have come under fire since President Donald Trump was sworn into his second, non-consecutive term in office. He immediately signed an Executive Order that terminated DEI policies and offices within the federal government, and directed federal agencies to ensure contractors, grantees and regulated businesses “do not operate any programs promoting DEI that violate any applicable Federal anti-discrimination laws.”
Over the last two months, FCC Chairman Brendan Carr has understood that to mean that any companies whose businesses are regulated by the agency must also abandon their DEI practices, too.
In a letter sent to Comcast CEO Brian Roberts last month, Carr said he ordered the FCC’s Enforcement Bureau to examine whether the company’s DEI policies and practices violated federal employment rules and other laws. (A Comcast spokesperson said they intend to comply with the probe.)
At a time when Carr has promised to cut down on red tape at the FCC, he has simultaneously affirmed his willingness to weaponize the agency’s regulatory authority in order to carry out Trump’s desires.
On Friday, Carr told Bloomberg News that “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 did not name any specific companies, but the agency is currently scrutinizing a number of deals at the moment. The largest involves Paramount Global, which owns around two dozen broadcast stations, more than half of which carry programs from its CBS network. Paramount is in the process of merging with Skydance Media, a matter that also involves the transfer of those broadcast licenses, which the FCC must approve before the deal can close.
“If there are 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 said on Friday.
Paramount has already started to pull back on some of its DEI initiatives, with the company’s co-CEOs telling employees last month that it would no longer evaluate “aspirational representation goals.”
Other broadcasters, including the Walt Disney Company, have announced similar moves. In February, the company said it was modifying some of its initiatives with the intent of aligning them with “business goals and company values.”
Shortly afterward, Disney removed or significantly modified some disclaimers that were shown before certain TV shows and movies on its Disney Plus streaming service. One prior warning said a film contained “negative depictions and/or mistreatment of peoples or cultures.” The softer message that now plays affirms it is “presented as originally created and may contain stereotypes or negative depictions.”
Disney executives also moved for the company to stop participating in the Human Rights Campaign Foundation’s equity index, which gauges how the company treats employees, investors and consumers who identify as LGBTQ+. The proposal was voted down by Disney’s shareholders earlier this week.
Comcast has few pending broadcast deals before the FCC — its plan to spin off cable networks into a separate company does not involved licensed stations and doesn’t require the agency’s approval, though it may still be scrutinized by other federal agencies, including the Department of Justice and the Federal Trade Commission.
Still, Comcast operates as one of the largest broadband providers in the country, and its use of public right-of-ways along with certain radio spectrum for Internet, data transfer and TV broadcasting subjects it to the FCC’s rule.
As of Friday afternoon, Comcast’s website still includes pages that outline the company’s DEI practices — which it calls “DE&I” — affirming its commitment to “foster a workplace that supports our greatest strength — our diverse, talented workforce.”
