Trump-appointed FCC Chair Brendan Carr is turning up the heat on Verizon as the telecommunications giant faces scrutiny over its diversity initiatives amid a major acquisition deal. Could this be the beginning of the end for corporate DEI programs under the new administration?
At a Glance
- FCC Chair Brendan Carr is investigating Verizon’s Diversity, Equity, and Inclusion (DEI) practices during its $9.6 billion Frontier acquisition
- The FCC has asked Verizon to halt promotion of DEI in corporate values and training materials
- The investigation aligns with President Trump’s Executive Orders banning DEI programs in government
- Verizon claims its DEI programs are inclusive, lawful, and focused on hiring the best talent
- This probe is part of Carr’s broader initiative targeting DEI programs at multiple media companies
Trump-Appointed FCC Chair Leads Charge Against Corporate DEI
The Federal Communications Commission is taking a closer look at Verizon’s diversity, equity, and inclusion practices as the telecom giant seeks approval for its $9.6 billion acquisition of Frontier Communications. Trump-appointed FCC Chair Brendan Carr is spearheading the investigation, which could potentially derail or delay the massive merger if Verizon’s practices are found to violate civil rights protections under the Communications Act.
Carr has specifically requested that Verizon cease promoting DEI initiatives in its corporate values and training materials. The move represents a significant regulatory shift that aligns with President Trump’s recent Executive Orders eliminating DEI programs throughout the federal government and encouraging private companies to follow the administration’s lead.
According to reports, Verizon must now engage directly with FCC staff involved in reviewing the Frontier acquisition to address these concerns. If the company’s DEI practices are deemed unacceptable, the acquisition could face additional hurdles beyond the standard regulatory review process. The probe appears to be part of a larger effort by the FCC under Carr’s leadership to enforce compliance with civil rights protections as interpreted by the current administration.
Verizon becomes latest company to face probe by FCC boss over DEI policies https://t.co/A1saXncPgt #news
— Business News (@15MinuteNewsBus) February 28, 2025
Verizon Responds to Federal Scrutiny
In response to the investigation, Verizon has expressed willingness to cooperate with federal regulators while defending its existing programs. The company maintains that its diversity initiatives are inclusive, lawful, and primarily focused on recruiting the best available talent regardless of background. However, the FCC’s current stance suggests these assurances may not be sufficient to clear the regulatory hurdle.
“We are aware of the Chairman’s concerns. We look forward to engaging with the FCC staff on this issue. Verizon has always focused on having the best talent to deliver the best experiences to our customers,” Verizon said.
Carr has made his position clear, instructing Verizon to reach out directly to agency personnel handling the pending transaction. The directive leaves little room for interpretation about the seriousness of the probe and its potential impact on the acquisition timeline. Wall Street analysts currently maintain a “Moderate Buy” consensus rating for Verizon stock, projecting a 6.4% upside potential despite the regulatory uncertainty.
Broader Crackdown on Media and Telecommunications
The investigation into Verizon represents just one front in Carr’s broader regulatory campaign. The FCC Chair has launched similar probes into Comcast’s diversity programs and is reviewing Paramount’s $8.4 billion merger with Skydance Media. Carr has also reinstated complaints regarding major news networks’ coverage of the 2020 presidential election, demonstrating the administration’s commitment to addressing perceived media bias.
The FCC’s actions signal potential challenges ahead for other telecom companies with active DEI initiatives. Industry observers expect many firms may proactively reevaluate their diversity programs to avoid similar regulatory scrutiny that could impact business operations or pending deals. The Verizon case could establish an important precedent for how corporate diversity initiatives will be treated under the second Trump administration.
