FCC chair announces DEI probe into Disney and ABC
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Federal Communications Commission chairman Brendan Carr announced Friday that he has asked the FCC's enforcement bureau to open an investigation into Disney and its subsidiary ABC over whether their diversity, equity and inclusion practices violated the agency's rules.
Why it matters: Carr recently threatened to block mergers based on a company's corporate DEI policies. The FCC is responsible for approving the sale of broadcast licenses. Disney has broadcast licenses for its local ABC affiliate stations.
Driving the news: In his letter to CEO Bob Iger dated Thursday, Carr said he wants to ensure that "Disney and ABC have not been violating FCC equal employment opportunity regulations by promoting invidious forms of DEI discrimination."
- In response, a Disney spokesperson said the company is reviewing the letter "and we look forward to engaging with the commission to answer its questions."
Between the lines: Disney has been trying to hedge against any sort of regulatory blowback from the Trump administration, following criticism from conservatives over the past few years about some of its DEI policies.
- Last month, the entertainment giant said it would roll back some of its DEI programs, including changing certain content disclaimers on its legacy titles and replacing diversity and inclusion as a performance factor used to evaluate executive compensation.
- In December, ABC settled a lawsuit with then President-elect Trump over comments by anchor George Stephanopoulos — a case that legal experts said the company likely could've won in court. ABC agreed to pay $15 million to fund Trump's presidential library and $1 million in legal fees.
Zoom in: While Carr acknowledged Disney's recent DEI rollback efforts in his letter, he said "significant concerns remain."
- He wants ensure that Disney ends "any and all discriminatory initiatives in substance, not just name," but didn't provide specific examples.
- He also suggested that Disney's focus on box office and programming success has shifted ever since it started to prioritize DEI policies.
The big picture: Disney is one of several companies that Carr is targeting with DEI investigations.
