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3471The Federal Communications Commission has launched an investigation into Disney and its television network ABC, focusing on whether their diversity, equity and inclusion policies violate federal employment regulations.
FCC Chair Brendan Carr, a Trump appointee, announced the probe on March 27. He said the agency’s Enforcement Bureau will determine if Disney and ABC broke equal employment opportunity rules by supporting what he referred to as “invidious forms of DEI discrimination.”
“Disney started out a century ago as an iconic American company,” Carr wrote in a letter to Disney CEO Bob Iger. “But then something changed. Disney has now been embroiled in rounds of controversy surrounding its DEI policies.”
Probe Comes Amid Wider Push Against DEI
The investigation is part of a larger effort by the Trump administration to reverse course on DEI programs in both public institutions and private businesses. President Trump issued an executive order aimed at eliminating what he described as wasteful and radical DEI initiatives. That directive has set the tone for actions by regulatory agencies like the FCC.
Carr has made it clear that DEI initiatives viewed as discriminatory based on race, gender or other categories could result in regulatory consequences. He said the FCC could deny merger approvals if such policies are present.
“If there’s businesses out there that are still promoting invidious forms of DEI discrimination, I really don’t see a path forward where the FCC could reach the conclusion that approving the transaction is going to be in the public interest,” Carr told Bloomberg.
The FCC chair mentioned several pending deals that might be impacted, including Paramount’s proposed merger with Skydance, Verizon’s $20 billion acquisition of Frontier Communications, and T-Mobile’s $4.4 billion purchase of U.S. Cellular’s wireless division. These transactions now face heightened scrutiny as a result of the FCC’s intensified stance.
Carr Targets Disney’s Internal DEI Standards
Carr’s letter cited whistleblower reports and news articles that detail how Disney allegedly applied racial and gender-based criteria across its operations. These practices, he argued, may have been baked into decisions around hiring, casting, content production and vendor selection.
One example was Disney’s “Reimagine Tomorrow” initiative, a campaign launched to promote underrepresented voices within the company. Carr also pointed to inclusion standards adopted by ABC, which reportedly required 50 percent of recurring characters to be from underrepresented groups. Other internal policies allegedly pushed for similar quotas among writers, directors, crew members, and external partners.
Carr claimed that Disney offered bonuses to executives based on DEI performance metrics and launched race-specific fellowships and hiring databases. In at least one case, a whistleblower described the formation of racially segregated spaces or affinity groups.
“It is not clear that the underlying policies have changed in a fundamental manner—nor that past practices complied with relevant FCC regulations,” Carr wrote. He added that simply rebranding or renaming programs isn’t enough if the substance of the initiatives remains the same.
Legal Questions Remain
The FCC does not oversee antitrust matters, unlike the Federal Trade Commission or the Department of Justice. However, it holds significant influence over the communications industry through its authority to approve broadcast license transfers. It can also delay or halt deals by opening investigations, a tactic that can be disruptive for media companies planning mergers or acquisitions.
There is ongoing legal uncertainty over whether the FCC has the authority to block transactions based on DEI policies alone. Trump’s executive order provides political backing for these actions, but it’s not clear how it would hold up if challenged in court.
Despite these questions, companies are already reacting. Firms like Meta, Amazon, McDonald’s and Goldman Sachs have either scaled back or restructured their DEI initiatives in recent months. These changes may be an effort to avoid being caught in the crosshairs of this federal crackdown.
A Disney spokesperson said the company is reviewing the FCC’s letter and intends to cooperate with the inquiry.
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