FCC Chair Brendan Kerr is ready to block mergers and acquisitions from companies that still hold strong diversity, equity and inclusive programs, according to the report.
Major deals, particularly Paramount Global's merger with Skydance Media and the parent acquisition of Verizon's Frontier Communications, could face obstacles from federal agencies if they don't backtrack the DEI policy. Kerr told Bloomberg on friday.
“We encourage businesses seeking FCC approval to stay busy ending their mysterious forms of DEI discrimination,” said Carr, who took the helm of the Federal Communications Commission in January.
The warning follows President Trump's own crusades against controversial policies – banning them across the federal level, and threatening his Attorney General Pam Bondy to “investigate, eliminate and punish illegal DEIs” within private companies.
“We can only move forward under the law and we can only approve a transaction if we find that doing so will serve the public interest,” Kerr told Bloomberg.
In February, Kerr ordered his agency to begin an investigation into Comcast's DEI policy.
“All the businesses regulated by the FCC… I believe there's a message that it's time for them to end their mysterious forms of DEI discrimination,” Kerr told a post at the time.
“It's very difficult to see how businesses get FCC approval while maintaining a mysterious form of discrimination,” he added.
The FCC is already expected to draw out a review of the $8 billion merger between Shari Redstone's Paramount and independent studio Skydance.
Carr began researching Verizon's diversity practices in February as the telecommunications giant tried to seal the frontier's $9.6 billion acquisition.
