The Federal Communications Commission is preparing to take action on two distinct fronts against the Walt Disney Company, according to people familiar with the talks. The commission is expected to rule that the daytime talk show *The View* does not qualify as a "bona fide" news program, which would subject ABC to rules requiring equal airtime for opposing political candidates. A genuine news show is exempt from that requirement.
In a separate track, the FCC also plans to send the review of Disney's broadcast licenses to an internal hearing, which would be a preliminary move toward possibly revoking those licenses. The affected licenses cover major markets including Los Angeles and New York. The people requested anonymity because the talks are private.
The agency started the rare license review after stating that Disney had failed to adequately respond to questions regarding its diversity and inclusion initiatives. This review also followed closely after President Donald Trump urged the network to face consequences.
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Following guidance from FCC Commissioner Brendan Carr, Disney requested that the agency decide on the classification of *The View*. The show has historically not offered candidates equal time, arguing it qualifies as a news program. The expected ruling from the FCC's Media Bureau can be appealed to the full commission and then to federal court.
Disney has escalated its legal tactics. Horacio Gutierrez, Disney's general counsel, retained former U.S. Solicitor General Paul Clement to represent the company before the FCC. Prior to his role at Disney, Gutierrez served as legal representative for Spotify Technology SA before the European Commission, a matter that ultimately resulted in Apple Inc. being fined $2 billion for antitrust violations.
Disney recently submitted documents to the FCC arguing that "the commission appears intent on making editorial decisions for ABC, in violation of the First Amendment." The company also said the agency really aims to "chill critical protected speech." Disney encouraged viewers to submit supportive comments in the FCC's public docket, drawing tens of thousands of responses.
Carr said in recent Bloomberg interviews that "no final decisions have been made in the Disney matters." His office declined further comment.
If the FCC designates *The View* as an entertainment program, ABC must offer equal airtime to all political candidates who are legally entitled to it. If the revocation process proceeds against Disney, it would first undergo an internal judicial review overseen by Carr or a panel that includes him and the other two commissioners. That panel could either drop the review or strip Disney of its licenses - a decision appealable to federal court.
Disney shares closed at $97.18, down 1.36% on the day. The company has signaled it will challenge any adverse FCC actions, and legal observers expect a prolonged fight that could reach the Supreme Court.
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