FCC May Veto Deals If Parties Have DEI Policies

FCC Chairman Brendan Carr signaled a significant policy shift by stating that the FCC is prepared to block mergers and acquisitions (M&A) involving companies that maintain what he calls “invidious” diversity, equity, and inclusion (DEI) policies. 

The stance, reported by Bloomberg, aligns with broader efforts under the Trump administration to dismantle DEI initiatives across both government and private sectors.

Carr’s position emerged amid reviews of high-profile deals, including Paramount Global’s merger with Skydance Media—potentially linked to CBS Mornings’ parent company—and Verizon Communications Inc.’s $20 billion acquisition of Frontier Communications Parent Inc. In an interview, Carr explicitly warned, “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.” 

He argues that such policies violate the Communications Act, which mandates the FCC to regulate communications without discrimination based on race, color, religion, national origin, or sex, and deprive Americans of equal treatment under the law.

This move builds on Carr’s earlier actions since taking the FCC helm in January 2025. He’s already eliminated the FCC’s own DEI programs, including its Diversity Task Force and advisory council, citing a Trump executive order from January 20, 2025, titled “Ending Radical and Wasteful Government DEI Programs and Preferencing.” 

Carr has also launched probes into companies like Comcast (owner of NBCUniversal) and Verizon, pressing them to roll back DEI efforts, with mixed results—Paramount signaled compliance by scrapping its programs, while Verizon’s progress has been slower, drawing Carr’s ire in a March 1 letter.

The implications are substantial. The FCC’s authority over broadcast licenses, spectrum allocation, and telecom mergers gives Carr leverage to influence corporate behavior. Blocking M&A deals could disrupt billions in transactions, as seen with the Paramount-Skydance and Verizon-Frontier cases.

Critics, like Free Press Co-CEO Jessica González, call it an abuse of power, arguing it twists anti-discrimination laws to target equality measures, potentially stifling diversity in media and telecom. Democratic FCC Commissioner Anna Gomez has echoed this, urging a focus on core missions like closing the digital divide rather than “stoking partisan culture wars.”