Walt Disney Co. and its ABC television unit sued the Federal Communications Commission on Tuesday, escalating a confrontation over the government’s power to review broadcast licenses and adding to broader questions about regulatory pressure and competition in the U.S. media industry.
The companies are seeking to stop the FCC from accelerating license-renewal proceedings for eight ABC-owned television stations. Disney argues that the unusual review is retaliation for programming and news coverage criticized by President Donald Trump and his administration, according to Reuters.
The dispute comes as the FCC is reshaping rules governing the broadcast industry, including its recent decision to eliminate a longstanding limit that prevented a single owner from reaching more than 39% of U.S. television households. That change could encourage consolidation among station groups and has drawn criticism from opponents who warn of greater concentration of media ownership, Reuters reported separately this month.
While Disney’s lawsuit centers on constitutional and administrative-law claims rather than a conventional antitrust complaint, the fight underscores the expanding influence of federal regulators over the competitive landscape for television. Decisions over licenses and ownership restrictions can affect which companies are able to operate stations, expand through acquisitions and compete for viewers and advertising.
According to Reuters, Disney and ABC filed their case in federal court in Washington and asked a judge for a temporary restraining order that would prevent the FCC from advancing the proceedings or scheduling a hearing. The companies said the public-comment period has already closed, leaving the commission in a position to take further action.
Disney alleges that the government is using the licensing process to pressure a broadcaster that has resisted demands from the administration. The company contends that the government’s conduct infringes its First Amendment rights, according to Reuters.
The FCC’s scrutiny follows repeated criticism of ABC by Trump. Reuters has reported that the president has urged regulators to revoke broadcast licenses and has called on broadcasters to remove programming and journalists he considers unfair or hostile. In November, Trump demanded action against ABC licenses after objecting to a question from an ABC News correspondent to Saudi Arabia’s crown prince concerning the 2018 killing of a Washington Post columnist.
Related: Disney Reaches $50 Million Settlement in Streaming TV Antitrust Case
The commission has said its examination of Disney also stems from an investigation into whether the company’s diversity policies constituted unlawful discrimination, an allegation Disney disputes, according to Reuters. FCC Chairman Brendan Carr opened that investigation in March 2025 and later said documents provided by Disney were inadequate.
ABC has said more than 150,000 public comments were submitted in connection with the station proceedings and that more than 95% supported the broadcasters, Reuters reported in July. Local officials and organizations in the eight affected states also filed comments supporting the stations.
The FCC is separately examining whether ABC’s daytime program “The View” should be subject to federal requirements giving political candidates equal opportunities for airtime, according to Reuters.
The confrontation arrives during a period of significant change in media competition policy. Earlier this month, the FCC voted 2-1 to abandon the 39% national television-household ownership ceiling and instead consider ownership questions case by case. Carr argued that loosening the restriction would give local broadcasters greater ability to compete in a media market increasingly dominated by digital platforms. Democratic Commissioner Anna Gomez opposed the decision and argued that Congress, rather than the agency, has authority to change the cap, Reuters reported.
Those regulatory shifts are unfolding alongside consolidation elsewhere in entertainment. In June, the Justice Department’s Antitrust Division cleared Paramount Skydance Corp.’s planned $110 billion acquisition of Warner Bros. Discovery after an eight-month review of the transaction’s effects on streaming, television and film. The department concluded the combination was unlikely to harm competition or consumers, according to Reuters.
For Disney, the immediate issue is whether the courts will intervene before the FCC moves further against the eight stations. Broadcast licenses allow local stations to use public airwaves, and outright revocations are exceedingly uncommon. Still, critics of aggressive license reviews argue that even the possibility of losing one can influence editorial and programming decisions, Reuters has reported.
The lawsuit therefore places two powerful institutions — one of the world’s largest entertainment companies and the federal agency overseeing American broadcasting — into a court fight that could help define the limits of regulatory authority over media companies at a time when ownership rules and industry competition are already being rewritten.
Source: Reuters
