FCC Chair Eyes DEI Policies in M&A Deals

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FCC Chairman Brendan Carr is signaling a tough stance on mergers and acquisitions (M&A) involving companies with Diversity, Equity, and Inclusion (DEI) policies he deems “invidious.” This announcement has stirred debate about the FCC’s role in regulating DEI practices.

In a recent interview, Carr stated that the FCC would carefully scrutinize M&A proposals from companies with such DEI policies. He emphasized that FCC approval hinges on whether a transaction serves the “public interest.” Carr believes that companies promoting discriminatory DEI practices may face hurdles in securing that approval.

This declaration follows FCC investigations into Comcast, NBCUniversal, and Verizon regarding their DEI initiatives. These investigations coincide with Comcast’s planned spin-off of its cable network portfolio and Verizon’s acquisition deal with Frontier Communications.

Carr has also moved to reinstate complaints regarding news coverage, including those against WPVI-TV, WCBS-TV, and WNBC-TV, raising questions about potential bias and the FCC’s involvement in content regulation. The FCC is now soliciting public input on a “60 Minutes” interview video featuring former Vice President Kamala Harris as part of its review of WCBS-TV and the pending Skydance-Paramount merger.

Furthermore, NPR, PBS, and KCBS Radio are under scrutiny for alleged violations of FCC rules, including underwriting guidelines and public interest obligations.

Senator Richard Blumenthal has criticized Carr’s actions, alleging a pattern of targeting media outlets that faced criticism from former President Trump. Blumenthal pointed out the lack of similar investigations into News Corp., raising concerns about impartiality. He argues that these investigations could threaten the First Amendment and create a chilling effect on newsrooms.

The Senate’s Permanent Subcommittee on Investigations has set a deadline for the FCC to provide information related to these investigations. The FCC has not yet responded to requests for comment.

This move by the FCC chairman has sparked controversy, with critics questioning the agency’s authority to regulate DEI policies and the potential impact on media diversity and freedom of speech. The situation remains fluid, with ongoing investigations and increasing scrutiny from lawmakers.