In March 2025, the Federal Communications Commission (FCC), led by Commissioner Brendan Carr, made headlines by signaling that companies with certain Diversity, Equity, and Inclusion (DEI) policies could face obstacles in gaining regulatory approval for mergers and acquisitions.

Paramount Global and Verizon are among the major corporations currently navigating this challenge.

As employers and business leaders evaluate their own DEI policies, this development highlights the growing complexity of balancing inclusive initiatives with evolving regulatory expectations.

The FCC’s Stance on DEI and Mergers

Commissioner Carr has stated that the FCC may block mergers if companies engage in DEI practices he describes as "invidious discrimination."

He emphasized that any corporate action must serve the public interest, and policies that are seen as discriminatory, even if well-intentioned, could jeopardize regulatory approval (Bloomberg, 2025).

This position signals a shift in how federal agencies are approaching DEI initiatives, especially as political pressure mounts to roll back diversity-focused efforts in both public and private sectors.

Paramount Global: Changing DEI Strategy Amid an $8 Billion Merger

Paramount is currently pursuing an $8 billion merger with Skydance Media, which is under FCC review. In response to potential regulatory roadblocks, Paramount has taken steps to adjust its DEI approach. The company recently announced it would:

• Eliminate numerical diversity hiring goals.

• Stop collecting demographic data from job applicants, except where legally required (Vulture, 2025).

These moves appear to be part of a broader effort to reduce legal exposure and ensure compliance with shifting federal expectations.

Verizon: Facing Scrutiny During a $9.6 Billion Acquisition

Verizon’s $9.6 billion acquisition of Frontier Communications is also under FCC review.

The agency has opened an investigation into Verizon’s DEI practices, questioning whether certain diversity policies may violate federal non-discrimination laws (Reuters, 2025).

This investigation adds another layer of complexity for Verizon, as it must balance shareholder interests, public image, and regulatory demands — all while undergoing a major corporate acquisition.

Implications for Employers

For employers and companies considering mergers or large financial moves, these developments offer several critical takeaways:

• Audit DEI Programs for Compliance:
  Regularly review all diversity policies and ensure they do not impose quotas or other rigid metrics that could be viewed as discriminatory.

• Balance Diversity Efforts With Legal Risk:
  While diversity and inclusion remain essential for talent attraction and business performance, they must be implemented in ways that comply with Title VII of the Civil Rights Act and other anti-discrimination laws.

• Communicate Transparency:
  Be clear in internal and external messaging about how diversity goals are achieved, emphasizing open opportunity for all candidates and employees.

• Understand Regulatory Impact:
  DEI policies are now part of the conversation at the highest levels of government. Employers need to stay informed and adapt their strategies accordingly.

What Job Seekers Should Watch For

• Companies that suddenly scale back or eliminate DEI programs may face cultural and reputational challenges that trickle down to the employee experience.

• Watch for consistent messaging in employer branding, recruitment materials, and leadership communications regarding diversity commitments.

• Ask prospective employers how they are adapting to changes in the regulatory and legal landscape and what that means for workplace inclusion.

Conclusion

The scrutiny of Paramount and Verizon serves as a cautionary tale for corporations navigating both large financial transactions and evolving DEI expectations.

Business leaders must balance genuine commitments to diversity with legal compliance and public scrutiny.

These recent developments signal that DEI programs cannot exist in a vacuum — they must align with both social responsibility and federal guidelines.

FAQs

Can DEI policies impact mergers and acquisitions?
Yes, particularly if federal regulators believe certain diversity practices conflict with anti-discrimination laws or public interest standards.

What should companies do to prepare?
Review DEI initiatives with legal counsel, eliminate any policies that could be viewed as exclusionary, and communicate commitments to inclusive practices that align with legal frameworks.

What laws apply?
Title VII of the Civil Rights Act (1964) prohibits discrimination based on race, color, religion, sex, or national origin. Federal agencies are increasingly assessing whether corporate policies comply with these standards.

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Sources & References:

• Bloomberg. (2025). FCC’s Carr threatens to block M&A for companies with DEI plans. Retrieved from https://www.bloomberg.com/news/articles/2025-03-21/fcc-s-carr-threatens-to-block-m-a-for-companies-with-dei-plans

• Reuters. (2025). FCC chair opens probe into diversity practices at Verizon. Retrieved from https://www.reuters.com/business/media-telecom/fcc-chair-opens-probe-into-diversity-practices-verizon-2025-02-27

• Vulture. (2025). Paramount rolling back DEI initiatives while seeking federal approval for merger. Retrieved from https://www.vulture.com/article/paramount-dei-trump-merger.html