The FCC recently announced that it approved Verizon’s deal to merge with fiber-optic internet provider Frontier, concluding a $20 billion deal that will see the telecommunications giant expand its carbon fiber cable network across 25 states.
The FCC’s approval comes months after the agency launched a probe into Verizon’s DEI policies; one of many directed against media companies with major mergers and acquisitions under review.
In a statement regarding that investigation posted on X, the Republican FCC Chairman Brendan Carr implied that Verizon’s DEI policies could jeopardize the viability of its merger with Frontier, directing the company to “reach out to the agency personnel that have been working on Verizon’s pending transactions at the FCC” to resolve the issue.
He described Verizon’s continued support for DEI as unusual, pointing out that most other high-profile companies had already begun to unwind such programs.
In a letter responding to Carr, Verizon committed to eliminating its DEI policies, including its workforce diversity goals, employee training practices, and compensation incentives tied to diversity metrics. The company also agreed to change its internal and external messaging to remove all references to DEI.
The FCC’s decision to approve the Verizon-Frontier merger came a few days after that letter was published.
In the approval announcement, Carr described the merger as promising to unleash “billions of dollars in new infrastructure builds in communities across the country – including rural America,” and stated that Verizon’s dropping of DEI “will ensure that the combined business will enact policies and practices consistent with the law and the public interest.”
The FCC’s apparent decision to make merger approval contingent on ending DEI underscores how federal agencies appear to be using forceful measures to influence the policies of private companies.
The Trump administration has also signaled that it will aggressively pursue False Claims Act enforcement against federal contractors and grant recipients that falsely certify that they do not engage in DEI activity.