FCC Chairman threatens to block mergers for companies with DEI

The head of the Federal Communications Commission (FCC), Brendan Carr, has made it clear that the FCC is willing to oppose mergers and acquisitions by companies that advance discriminatory diversity, equity, and inclusion practices. This stance taken by Carr could place several billion-dollar transactions within the communications sector in jeopardy. Notably, Carr pointed out specific deals such as Paramount Global’s merger with Skydance Media and Verizon Communication Inc.’s acquisition of Frontier Communications Parent Inc.

Chairman Carr is urging any businesses seeking FCC approval to rapidly discontinue any discriminatory diversity, equity, and inclusion practices. This move by the FCC aligns with President Donald Trump’s efforts to eliminate diversity, equity, and inclusion initiatives across the federal government and corporate America. Trump has issued executive orders barring such practices and has directed agencies, including the FCC, to identify entities engaging in what he considers to be “illegal DEI” activities.

The FCC’s willingness to block mergers and acquisitions based on diversity, equity, and inclusion practices is sending a clear message to companies. Chairman Carr’s comments suggest that for any business with such initiatives in place, gaining FCC approval for future mergers or acquisitions could be a significant challenge.

This approach by the FCC is part of a broader initiative to scrutinize and, if needed, halt deals that perpetuate discriminatory practices. By using the FCC’s approval process as a lever to encourage companies to align with non-discriminatory policies, Carr and the FCC are taking a firm stance against what they see as harmful practices within the business community.

The actions taken by Chairman Carr and the FCC are in line with the broader national discourse around diversity, equity, and inclusion. With the federal government actively working to root out what it sees as discriminatory practices, it is not surprising that this sentiment is being mirrored in the business world.

The FCC’s role in regulating communications and media companies gives it significant leverage in influencing business practices. By wielding its power to scrutinize and potentially block mergers and acquisitions, the FCC is demonstrating a commitment to promoting fairness, equality, and inclusivity in the business landscape.

As the FCC continues to press for the removal of discriminatory practices, companies seeking FCC approval for transactions will need to carefully consider their diversity, equity, and inclusion policies. Failure to address discriminatory practices could not only result in the refusal of FCC approval but could also lead to broader reputational damage and financial loss for companies involved in mergers and acquisitions.