US: Mergers for companies with DEI policies will be blocked
What's the story
Brendan Carr, the Chaiperson of Federal Communications Commission (FCC), has suggested that it might block specific mergers and acquisitions if companies continue to promote diversity, equity, and inclusion (DEI) policies.
Speaking to Bloomberg, Carr said businesses looking for FCC approval should "get busy ending any sort of their invidious forms of DEI discrimination."
This policy could affect several high-profile deals in the US communications sector.
Policy shift
Carr's stance on DEI policies
Carr's position on DEI policies mirrors that of President Donald Trump's administration, which has been critical of such initiatives.
"We can only under the statute move forward and approve a transaction if we find that doing so serves the public interest," Carr told Bloomberg.
He further emphasized his position by citing potential deals involving Paramount Global, Verizon Communications, and T-Mobile US as ones that could be affected by this policy change.
Probe details
Investigation into Comcast's DEI initiatives
In February, Carr launched an investigation into Comcast's DEI-related initiatives.
He also raised concerns with Verizon over its "apparent lack of progress" in terminating DEI efforts.
Carr urged Verizon executives to reach out to FCC officials overseeing its acquisition of Frontier Communications, over these issues.
This is part of a wider strategy by the Trump administration to wipe out diversity programs from federal agencies and major corporations across the country.
China probe
Carr's investigation into Chinese companies
Along with his crackdown on firms with DEI policies, Carr has also announced a sweeping investigation into US operations of China-based firms that were previously placed on the FCC's "Covered List."
These include Huawei, ZTE, and China Telecom.
The FCC will investigate each company's "current levels of operations" in the US amid concerns that some or all of these companies are trying to evade FCC bans by continuing business on a private or 'unregulated' basis.
Evaluation criteria
Broader public interest authority
Carr hinted that the FCC's assessment of a company's DEI policies could go beyond hiring.
He said that supplier diversity efforts and programming choices could also be taken into account in their assessment.
"We do have a broader public interest authority, particularly when it comes to licensed broadcast stations," Carr said, emphasizing the FCC's wide jurisdiction in this regard.