Disney and ABC sue FCC over early licence renewals

Disney and its subsidiary ABC have filed a lawsuit against the US Federal Communications Commission (FCC) in a federal court in Washington, DC, challenging an order that eight ABC-owned stations apply for broadcast licence renewals years ahead of schedule.

The lawsuit, filed on Tuesday, alleges that the FCC's action is part of a retaliatory campaign by the Trump administration against ABC's speech. The complaint, which runs 46 pages, states that "again and again, the Administration has attacked ABC's speech – the stories its journalists report and the viewpoints its network programs air," and that "over time, those attacks have escalated into express demands that ABC be stripped of its broadcast licenses because of its speech."

The FCC's order, issued in April, requires the stations to file for renewals before their current terms expire. According to the lawsuit, six of the stations are not even halfway through their current terms. The earliest deadline applies to WTVD in Durham, North Carolina, with a renewal date of December 2028.

FCC cites DEI investigation, Disney alleges political motive

The FCC has stated that the early renewal order resulted from an investigation into diversity, equity and inclusion practices at Disney and into ABC's talk show The View. However, Disney and ABC argue that the order is an attempt to punish the network for content the administration dislikes.

The complaint cites posts by President Donald Trump on Truth Social threatening the network, including one stating that ABC "should lose their Licences for their unfair coverage of Republicans and/or Conservatives."

The lawsuit also references tensions between Trump and ABC late-night host Jimmy Kimmel. Trump called for Kimmel to be fired after the host made jokes about first lady Melania Trump, which included calling her an "expectant widow" before the White House correspondents dinner shooting. FCC Chairman Brendan Carr ordered the licence reviews after those comments, according to Euronews.com. Carr later warned broadcasters of consequences if they did not take disciplinary action against Kimmel.

Carr's public interest defence and broader FCC actions

Carr has defended the FCC's actions by saying broadcasters have a duty to "operate in the public interest" in exchange for subsidised access to public airwaves. He also said, after Trump's criticism of Kimmel: "We can do this the easy way or the hard way." In March, Carr threatened broadcasters airing "fake news" with losing their licences, amid Trump's frustration with coverage of the US-Israel war on Iran, as reported by Al Jazeera.

The FCC has also targeted ABC's The View over its exemption from federal equal-time rules and opened investigations into CBS News and NBC News, according to Euronews.com.

Legal response and market reaction

In the complaint, ABC and Disney call for a "speedy hearing" and a temporary restraining order. The lawsuit describes the situation as an "existential threat" for US media, warning that if the administration's actions are allowed to stand, "the message to every media company in the country will be unmistakable: tell only the stories the Administration" approves.

Disney's stock rose 1.1 percent in morning trading after the lawsuit announcement, as reported by Al Jazeera.

Seth Stern, director of advocacy at the Freedom of the Press Foundation, criticised Carr as Trump's "censorship tsar," saying "It's about time for someone to take Brendan Carr and his FCC to court," according to Al Jazeera.

Perspectives

  • Disney and ABC: The early licence renewals are politically motivated retaliation for the network's speech, and the FCC's order violates the First Amendment and threatens the independence of US media.
  • Federal Communications Commission: The early renewals are justified because broadcasters must operate in the public interest in exchange for using public airwaves, and the order was based on an investigation into DEI practices and The View.
  • Freedom of the Press Foundation (Seth Stern): The FCC's actions under Chairman Carr represent an abuse of power and a threat to press freedom, and the lawsuit is a necessary legal challenge.