Disney's Legal Advantage in FCC License Review Battle Against ABC and Trump Administration

Disney appears to have a significant legal advantage in its upcoming battle with the Federal Communications Commission (FCC) over an unusual broadcast license review, according to legal experts.

The review, ordered on June 3, 2025, by FCC Chair Ajit Pai—a Trump appointee—targets ABC, a network owned by Disney. Legal specialists argue that the agency’s authority to revoke or deny a broadcast license renewal is severely limited under current law.

1996 Telecommunications Act: A Key Legal Shield for Broadcasters

In 1996, Congress passed the Telecommunications Act, a landmark update to the Communications Act of 1934, which established the FCC and defined its regulatory powers. The law included provisions that made it far more difficult for the FCC to deny or revoke a broadcaster’s license, even during renewal.

"Since the NAB [National Association of Broadcasters] got an amendment in the 1996 Telecommunications Act, denying renewal to a broadcaster faces an almost insurmountable burden," said Andrew Jay Schwartzman, senior counselor at the Benton Institute for Broadband & Society, in an interview with Ars Technica.

What the 1996 Law Changed

• Higher Standard for License Denial: The FCC must now prove that a broadcaster has engaged in serious misconduct or failed to serve the public interest in a demonstrable way.
• Burden of Proof: The agency bears the burden of showing clear evidence of wrongdoing, making arbitrary or politically motivated revocations far more difficult.
• Judicial Review: Broadcasters can appeal FCC decisions in federal court, further limiting the agency’s discretion.

Why the FCC’s Move Is Unusual

Historically, the FCC has rarely denied license renewals. The last major case of a denied renewal occurred in 1991, when the FCC revoked the license of a small TV station in Florida due to fraudulent billing practices. Since then, renewals have been granted routinely, even in cases involving controversial content or ownership disputes.

The current review of ABC’s license—part of a broader push by the Trump administration to scrutinize media ownership—marks a rare and aggressive use of FCC authority. Legal observers suggest the move may be politically motivated, given ABC’s coverage of the administration and its alignment with Disney’s corporate stance on certain issues.

Disney’s Likely Legal Strategy

Industry analysts expect Disney to argue that the FCC’s review lacks legal merit and violates the protections afforded by the 1996 Telecommunications Act. The company may also challenge the review on First Amendment grounds, asserting that it represents an unconstitutional attempt to punish a news organization for its editorial content.

Schwartzman added, "The FCC would need to demonstrate that ABC has failed in its public interest obligations in a way that goes beyond mere criticism or disagreement with its programming. That’s a very high bar."

Potential Outcomes

If Disney chooses to fight the review, the case could drag on for months or even years, tying up resources and creating uncertainty for ABC’s operations. Alternatively, the company could negotiate a settlement with the FCC, though such an outcome would likely require concessions that Disney may be unwilling to make.

For now, Disney has not publicly commented on the review, but legal experts say the company is likely preparing a robust defense based on the 1996 law’s protections.