The Federal Communications Commission’s approach to evaluating corporate human resources policies during merger reviews has become increasingly controversial. As telecommunications companies navigate complex regulatory landscapes, the intersection of merger approvals and HR practices raises important questions about the FCC’s proper role and statutory authority.
Recent merger reviews have spotlighted this tension, with commissioners and industry stakeholders debating whether diversity initiatives, labor policies, and other HR practices should factor into merger approval decisions. This analysis examines the Information Technology and Innovation Foundation’s (ITIF) position that the FCC should decouple merger reviews from partisan HR policy debates.
ITIF’s Position on Politicized Merger Review Criteria
The Information Technology and Innovation Foundation argues that the FCC has increasingly strayed from its core technical and competitive analysis mandate when reviewing telecommunications mergers. According to ITIF’s research, the Commission’s “public interest” standard has become a vehicle for advancing partisan policy objectives that extend well beyond traditional merger concerns.
ITIF’s position centers on three key arguments: First, that HR practices rarely impact the technical merits of a merger; second, that politicized reviews create regulatory uncertainty; and third, that the FCC lacks clear statutory authority to evaluate corporate HR policies as part of its merger review process.
“The FCC’s merger review process should focus on technical capabilities, market competition, and consumer impacts—not become a backdoor for imposing contested HR policies that Congress has not authorized through legislation,” states ITIF’s Senior Telecommunications Policy Analyst.
The foundation emphasizes that when merger reviews become entangled with partisan HR debates, the result is often delayed approvals, increased compliance costs, and regulatory uncertainty that ultimately harms innovation in the telecommunications sector.
Arguments For and Against Linking HR Practices to Merger Approvals
Arguments Supporting HR Evaluation
Proponents of including HR practices in merger reviews argue that the FCC’s public interest standard necessarily encompasses broader societal concerns. They contend that:
- Telecommunications companies serve diverse communities and should maintain workforces that reflect this diversity
- Labor practices impact service quality and customer experience
- Merger conditions can prevent workforce reductions that might harm service delivery
- The public interest standard is intentionally broad to allow consideration of evolving social priorities
Arguments Against HR Evaluation
Critics of linking HR practices to merger approvals maintain that this approach exceeds the FCC’s proper role. Their arguments include:
- HR policies fall under the purview of other agencies like the EEOC and Department of Labor
- Merger-specific conditions create inconsistent regulatory standards across the industry
- Politicized reviews delay critical infrastructure investments
- The FCC lacks specialized expertise to evaluate complex HR practices
Legal Analysis of FCC’s Statutory Authority
The Communications Act of 1934 grants the FCC authority to review telecommunications mergers under a “public interest, convenience, and necessity” standard. This standard is broader than the antitrust analysis conducted by the Department of Justice or Federal Trade Commission, which focuses primarily on competition concerns.
However, legal experts debate whether this broad standard encompasses the authority to evaluate corporate HR practices. The statute does not explicitly mention workforce policies, diversity initiatives, or labor relations as factors for consideration.
Courts have generally granted the FCC significant deference in interpreting its public interest authority, but recent Supreme Court decisions have begun to limit agency discretion. The 2023 decision in Loper Bright v. Raimondo overturned the Chevron doctrine, potentially constraining the FCC’s ability to broadly interpret its statutory mandate.
Does the Communications Act explicitly authorize HR policy review?
No, the Communications Act does not explicitly mention HR policies, diversity initiatives, or workforce practices as factors for consideration in merger reviews. The FCC has historically interpreted its “public interest” standard broadly to encompass these areas.
How has judicial review affected the FCC’s authority?
Recent Supreme Court decisions have begun to limit agency discretion in interpreting statutory authority. The overturning of the Chevron doctrine means courts may be less likely to defer to the FCC’s broad interpretations of its public interest standard.
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Recent Merger Reviews Influenced by HR Expectations
Several recent telecommunications merger reviews highlight the growing influence of HR considerations in FCC decision-making:
Verizon-Frontier Communications Merger
In May 2025, Verizon announced the termination of its diversity, equity, and inclusion programs amid FCC scrutiny of its $9.6 billion acquisition of Frontier Communications. FCC Chairman Brendan Carr had previously indicated that DEI practices could jeopardize regulatory approval of the transaction.
The company’s letter to the FCC stated it would remove DEI references from its website, employee training, hiring practices, and supplier diversity strategies. This case demonstrates how HR practices have become central to merger negotiations rather than peripheral considerations.
T-Mobile-USCellular Acquisition
During T-Mobile’s acquisition of USCellular, the FCC imposed conditions related to workforce retention and device unlocking policies. Public interest groups called for additional requirements including mandatory data roaming agreements.
Critics argued these conditions went beyond addressing competitive concerns directly related to the merger and instead used the transaction as leverage to implement broader policy objectives that the FCC had been unable to achieve through traditional rulemaking.
T-Mobile-Mint Mobile Deal
T-Mobile’s $1.3 billion acquisition of Mint Mobile included device unlocking policy commitments that the FCC had been attempting to implement industry-wide through separate rulemaking proceedings. The merger review process effectively allowed the Commission to impose these requirements on T-Mobile without completing the formal rulemaking process.
Recommendations for Depoliticizing the Regulatory Process
Based on ITIF’s analysis and industry best practices, several approaches could help depoliticize FCC merger reviews while maintaining appropriate public interest oversight:
Statutory Clarification
Congress could amend the Communications Act to more precisely define the scope of the FCC’s public interest standard, explicitly addressing whether and how HR practices should factor into merger reviews.
Procedural Reforms
The FCC could adopt internal guidelines requiring that merger conditions be directly related to transaction-specific competitive concerns rather than broader policy objectives.
Transparency Requirements
Implementing mandatory public disclosure of the analytical framework used to evaluate mergers would help ensure consistency and reduce the perception of politically motivated decisions.
“Merger reviews should focus on competition and consumer welfare, not become a vehicle for imposing regulations that couldn’t be achieved through normal rulemaking processes,” notes a former FCC Commissioner. “This approach undermines regulatory certainty and the rule of law.”
Additional recommendations include time limits on merger reviews to prevent regulatory delays, judicial review mechanisms for merger conditions, and clearer division of responsibilities between the FCC and antitrust agencies to reduce duplicative reviews.
Creating a Balanced Approach to Merger Reviews
The debate over FCC merger reviews and HR practices reflects broader tensions in telecommunications policy. While the Commission has legitimate authority to protect the public interest, extending this authority to detailed oversight of corporate HR policies risks regulatory overreach and politicization.
ITIF’s analysis suggests that a more balanced approach would focus merger reviews on technical capabilities, market competition, and direct consumer impacts. HR practices that don’t directly affect these areas would be better addressed through industry-wide rulemaking or left to specialized labor and employment agencies.
As telecommunications companies continue to consolidate and evolve, establishing clear, consistent, and legally sound merger review standards will be essential for promoting both regulatory certainty and appropriate public interest protections.
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