After launching investigations into the diversity, equity and inclusion policies and practices of Comcast and Verizon, the Federal Communications Commission is setting its sights on Disney next.
FCC chairman Brendan Carr told Punchbowl News he’s putting the “finishing touches” on a letter to the ABC parent company. He declined to reveal which specific DEI initiatives he was concerned with, but said the letter would outline similar concerns raised with Comcast and Verizon and “whether they’re engaged in any of this sort of DEI discrimination that could run afoul of our EEO rules or potentially our public interest standard.”
“We’re going to get to the bottom of everything that is ongoing here and stay tuned on that one,” he added.
Representatives for the FCC and Disney did not immediately return TheWrap’s request for comment.
Carr’s latest shot at Disney comes after he penned a letter to CEO Bob Iger earlier this year, warning that he would be monitoring the company’s carriage negotiations with local broadcast TV stations.
At the time, he accused ABC of “attempting to extract onerous financial and operational concessions from local broadcast TV stations under the threat of terminating long-held affiliations, which could result in blackouts and other harms to local consumers of broadcast news and content.”
The FCC also reinstated a “news distortion” complaint against ABC affiliate WPVI-TV over the network’s fact-checking of Donald Trump during a presidential debate.
During the interview with Punchbowl, Carr also reiterated his previous threat to block M&A for any company that embraces DEI policies.
“Any company that wants to get a transaction approved by the FCC, we have to make a finding that approving the transaction will serve the public interest. I have a hard time seeing a path forward for a company that’s promoting these invidious forms of DEI discrimination for the FCC to get a yes,” he said. “And so what I’ve suggested to regulated companies — not just ones that are looking to do deals before the FCC but all businesses regulated by the FCC — is I suggest that they get busy ending their promotion of DEI.”
“If any particular business is not sure whether that applies to them, they should let me or my office know. Like Verizon, like Comcast, we’ll send them a letter and let them know exactly what we have in mind,” he added.
Disney previously said it would end its “Reimagine Tomorrow” initiative, which is aimed at promoting stories from underrepresented groups.
However, the company’s shareholders voted to reject a proposal that would’ve ended Disney’s involvement in the Human Rights Campaign’s Corporate Equality Index, a survey that measures corporate policies and practices related to LGBTQ+ workplace equality, at its annual meeting. Disney’s board recommended against the proposal and its shareholders overwhelmingly agreed, with only 1% voting in favor, according to a preliminary tally.
Shares of Disney have fallen 16.7% in the past year and 9% year to date, but are up 4.8% in the past six months.
The post FCC to Investigate Disney Over DEI Practices appeared first on TheWrap.