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ABC fights FCC license order, cites political retaliation

New York Times Business •
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ABC, owned by Disney, filed a formal response to the Federal Communications Commission after the agency ordered the network to renew eight major market broadcast licenses months ahead of schedule. The move follows President Trump’s public demand for the dismissal of late‑night host Jimmy Kimmel, which ABC says links the FCC action to political retaliation.

ABC argues the early‑renewal request violates its First Amendment rights, noting the FCC has not pursued such a group‑wide filing in over half a century. The network submitted the required applications under duress and asked for a 60‑day extension, which the commission denied without explanation, heightening uncertainty over revenue from its owned‑and‑operated stations.

Last year Disney settled a separate Trump‑era lawsuit with $15 million; the current dispute could force a hearing before an administrative law judge or the full commission, potentially dragging out for years. Even if ABC retains its licenses, the protracted process casts a shadow on cash flow and may prompt advertisers to reassess placements on its flagship outlets.

The showdown underscores how regulatory levers can become bargaining chips in partisan battles, reminding investors that media assets remain vulnerable to policy swings despite their entrenched market positions.