Battle Between Disney and the F.C.C. Moves to the Courts - The New Yo…

Disney Seeks Court Order to Halt FCC Review of ABC Station Licenses

A federal judge in Washington is scheduled to hear arguments Tuesday in a lawsuit filed by the Walt Disney Company seeking to block the Federal Communications Commission from conducting an early review of the broadcast licenses held by its eight ABC-owned stations.

Disney contends that the review, announced by the FCC in April, exceeds the agency’s standard procedures and stems from objections to editorial content on ABC programs. The FCC maintains that the review is a legitimate examination of whether the stations are meeting their public interest obligations under the Communications Act of 1934, which requires broadcasters to operate in the public interest as a condition of using spectrum allocated by the government. Licenses are not permanent property rights and are subject to periodic review.

The FCC, led by Chair Brendan Carr, has stated that the review follows an investigation into Disney’s diversity and inclusion employment practices. Disney has described the timing of the announcement as following public criticism by President Trump of a monologue on “Jimmy Kimmel Live!” The agency has not yet made a final determination on the licenses, which are not scheduled for routine renewal until 2028 or later.

In its complaint, Disney argues that the FCC’s information requests—more than 600 inquiries that have produced over 13,000 pages of documents—have already affected programming decisions. Producers of “The View” have become more cautious in selecting political guests and airing certain video clips, according to the filing. The company also noted that an interview with a political candidate was moved to an online platform rather than broadcast on the late-night program. Disney claims these effects constitute immediate harm to its First Amendment rights and seeks judicial intervention before any hearing or final FCC order.

The FCC has asked the court to dismiss the suit, arguing that administrative proceedings must run their course before judicial review. Carr has stated that enforcing statutory public interest obligations does not violate broadcasters’ constitutional rights. The agency has accused Disney of attempting to circumvent the normal regulatory process through litigation.

Under the Communications Act, the FCC possesses authority to examine whether station operations serve the public interest, convenience, and necessity. This authority applies even outside of scheduled renewal periods when the agency identifies potential compliance issues. The FCC has not previously initiated a comparable review of multiple owned-and-operated stations belonging to a single network.

Legal observers differ on the likely outcome. Some note that courts generally require parties to exhaust administrative remedies before intervening. Others point to precedents allowing pre-enforcement challenges when a regulatory process itself is alleged to chill protected speech. Disney’s position is that the volume and scope of the FCC’s demands, combined with the possibility of extended proceedings, create ongoing injury regardless of the final result.

The lawsuit describes the FCC’s actions as an effort to penalize the network for coverage and commentary disfavored by the administration. The FCC counters that its focus remains on employment practices and compliance with existing rules rather than specific program content.

Arguments on Tuesday will be presented by Disney counsel Beth Wilkinson. The case is assigned to U.S. District Judge Loren L. AliKhan.

The dispute centers on the boundary between the FCC’s regulatory oversight of broadcast licensees and the editorial independence of network programming. Both parties agree that the Communications Act grants the agency certain powers over license holders while the First Amendment limits government interference with speech. The court will decide whether the current review crosses that line before the agency completes its work.