Last Updated on March 29, 2025 by Bertrand Clarke

In a significant development that signals the new administration’s stance on corporate diversity initiatives, Federal Communications Commission (FCC) Chair Brendan Carr has announced an investigation into The Walt Disney Company and its subsidiary ABC regarding their diversity, equity, and inclusion (DEI) policies.

The investigation, revealed Friday through Carr’s social media channels, centers on concerns that Disney and ABC may have violated FCC equal employment opportunity regulations through their implementation of DEI programs. In correspondence addressed to Disney’s Chief Executive Bob Iger, Carr expressed his intention to determine whether the entertainment conglomerate had engaged in what he termed “invidious forms of DEI discrimination.”

“Disney’s storied history was built on creating beloved entertainment and achieving programming excellence,” Carr stated in his communication to Iger. “However, a notable shift occurred when the company became increasingly entangled in controversies surrounding its approach to diversity initiatives.”

The Disney investigation represents the latest move in what appears to be a broader effort by the current administration to scrutinize and curtail diversity programs across private sector enterprises. This follows earlier actions to eliminate DEI considerations within federal government hiring practices, creating mounting pressure on corporations to reevaluate or abandon their diversity frameworks.

In his letter, Carr asserted that Disney’s DEI policies from recent years “permeated numerous facets of their decision-making,” adding that the entertainment giant had “incorporated explicit race and gender-based criteria throughout its operational structure.”

When contacted for comment, a representative from Disney confirmed receipt of the FCC’s inquiry, stating: “We are currently reviewing the communication from the Federal Communications Commission and anticipate engaging with them to address their inquiries.”

Expanding Regulatory Approach

The administration appears committed to its campaign against corporate diversity initiatives, with Chair Carr—an appointee of the president—declaring that the FCC will prevent mergers and acquisitions involving media companies that maintain DEI policies.

During a Bloomberg interview last week, Carr advised, “Companies seeking FCC approval would be well-served to promptly terminate any practices that could be characterized as improper DEI discrimination.”

This approach marks a departure from traditional regulatory practices. Historically, federal regulators have blocked corporate consolidations based on concerns about market competition or consumer pricing impacts. According to legal specialists and advocacy organizations, there is no precedent for blocking mergers based on human resources policies.

Legal experts note ambiguity surrounding Carr’s definition of “invidious” DEI efforts and which specific diversity programs might be deemed unlawful. Nonetheless, the FCC chair’s position carries significant implications for pending and future transactions in the communications industry. Carr specifically referenced Paramount’s proposed merger with Skydance and Verizon’s acquisition of Frontier. Additionally, the Commission has initiated an investigation into Comcast’s diversity practices.

Corporate Responses Vary

The corporate response to this anti-DEI movement has been mixed. While some companies have challenged the new approach, others are taking steps to avoid regulatory scrutiny. Major corporations including Meta, Amazon, McDonald’s, and Goldman Sachs have modified or scaled back their diversity programs in recent months. However, there remains significant uncertainty regarding what constitutes an “illegal DEI” program under the current regulatory interpretation.

Industry analysts suggest that the investigation into Disney represents a strategic choice given the company’s cultural significance and market prominence. As one of the world’s largest entertainment conglomerates, Disney’s policies have outsized influence across multiple sectors including film, television, streaming services, and theme parks.

“The targeting of Disney sends a clear message to other corporations,” said Maria Hernandez, corporate governance expert at Georgetown University. “If a company of Disney’s stature and resources is subject to this level of scrutiny, other businesses will likely reconsider their approaches to diversity initiatives.”

The FCC investigation comes at a challenging time for Disney, which has faced various controversies in recent years related to content decisions, business strategies, and internal policies. The company has worked to balance creative expression with evolving societal expectations while maintaining its core business objectives.

Disney shareholders have expressed mixed reactions to the investigation announcement. Some view the regulatory scrutiny as potentially disruptive to operations, while others see it as an opportunity for the company to refocus on core entertainment priorities.

Communication industry observers note that the outcome of this investigation could establish important precedents for how corporations navigate diversity initiatives under the current regulatory environment. The FCC’s findings and any resulting actions may determine whether companies maintain, modify, or abandon their diversity programs altogether.

As this situation develops, many businesses are adopting a wait-and-see approach while consulting with legal experts to evaluate their existing policies. The uncertainty surrounding what constitutes compliant versus non-compliant DEI practices has created a complex landscape for corporate decision-makers across industries.

The investigation into Disney represents just one component of a broader shift in regulatory priorities that appears poised to reshape corporate approaches to workplace diversity throughout the American business landscape. As companies await further clarification on acceptable practices, the business community remains in a period of significant transition regarding diversity initiatives and related corporate policies.