Last week, Disney sued the FCC to block early license reviews for eight ABC-owned television stations, alleging that it is pretense for punishing the company for airing views that President Trump didn't agree with. The FCC has called the review part of its existing investigation into how its diversity, equity and inclusion practices violate federal law.
ABC's lawsuit marks the first time a major broadcaster has taken the Trump-era FCC to court over alleged retaliation for its editorial decisions, marking a notable shift from other media organizations. For Disney CEO Josh D’Amaro, it represents a stark reversal of the company’s more accommodating approach under former CEO Bob Iger, who sought to ease tensions with President Donald Trump.
There’s always the chance that the FCC could prevail in the legal battle, which other companies could see as a signal to keep their own heads down.
“If the FCC wins, I think they would be emboldened to continue or it would just have a chilling effect,” Corey Martin, managing partner and chair of Granderson Des Rochers LLP’s Entertainment Finance Practice, told TheWrap. “If Disney is not successful in this matter, then I don’t think that you’re going to see any other companies stepping up or coming forward to fight this particular fight or anything similar to it.”