FCC Chair Threatens to Block Telecom M&As Over DEI Policies

The US Federal Communications Commission (FCC) Chair, Brendan Carr, has expressed his willingness to block mergers and acquisitions in the telecom sector if companies uphold certain diversity, equity, and inclusion (DEI) policies deemed invidious. His statements target significant deals such as Verizon's $20 billion acquisition of Frontier and T-Mobile’s acquisition of UScellular’s assets. Carr stipulates that only transactions serving the public interest will receive FCC approval. He has previously criticized Verizon and Comcast for their DEI policies and urged them to discontinue any discriminatory practices. Carr's stance mirrors the Trump administration's opposition to DEI policies in corporate and governmental sectors. Additionally, Carr announced a large-scale investigation into US operations of businesses linked to the Chinese government due to security concerns. The investigation aims to ensure compliance with FCC prohibitions by entities like Huawei and ZTE, previously sanctioned for national security risks. These developments highlight the interplay between regulatory oversight, corporate governance, and national security concerns in the telecom industry.