Disney and ABC have filed a lawsuit in federal court in Washington, D.C., seeking to stop an early review of licenses for eight ABC television stations.

The company says the Federal Communications Commission is trying to punish ABC for refusing to comply with demands from the Trump administration. Disney argues that the agency is being used as a political weapon against the network.

The lawsuit was filed Tuesday in the U.S. District Court for the District of Columbia. Disney says the FCC is trying to coerce and retaliate against ABC because the network has not complied with administration demands.

President Donald Trump has repeatedly called on broadcasters to drop programs he dislikes or that have been critical of him. He has also urged the FCC on multiple occasions to revoke ABC’s broadcast licenses.

FCC Chairman Brendan Carr ordered an early review of Disney’s eight ABC stations in April. Carr, a Republican whom Trump designated chairman in January 2025, said the review was tied to an FCC investigation into Disney’s diversity, equity and inclusion practices, not to the network’s programming. Broadcast licenses run on eight-year terms, and reviews ordinarily occur when stations apply for renewal rather than in the middle of a license term.

ABC has also faced scrutiny over its daytime talk show The View. The FCC has been investigating whether the program violated equal-time rules for political candidates, a decades-old requirement that broadcasters airing a legally qualified candidate provide comparable opportunities to rival candidates who request them. The inquiry stems from appearances on the show by Democratic vice-presidential nominee Tim Walz during the 2024 campaign.

First Amendment Claims at the Center

Disney’s lawsuit argues that the FCC’s actions violate ABC’s First Amendment rights. The company is asking the court to halt the license proceedings entirely.

Disney CEO Josh D’Amaro has defended the network, saying the company’s position in the FCC dispute is clear and that Disney would not be told how to run its business.

The case raises questions about the independence of broadcast regulators and the limits of government pressure on news and entertainment companies. The FCC under Carr has pursued similar inquiries against other major media companies, including Comcast’s NBCUniversal over its DEI practices and Paramount’s CBS over the editing of a 60 Minutes interview with then-Vice President Kamala Harris. Paramount paid $16 million to settle a defamation lawsuit Trump filed over that interview. Disney, for its part, agreed in December 2024 to pay $15 million to settle a defamation suit Trump brought over remarks by ABC News anchor George Stephanopoulos.

Disney Shares Fall

Disney shares fell more than 3% on Tuesday as news of the lawsuit spread.

The Walt Disney Company, DIS

The legal battle adds uncertainty for investors already watching Disney navigate a challenging media environment. Broadcast licenses are essential to the company’s traditional television business.

Disney owns eight ABC affiliate stations across major U.S. markets. Losing or facing disruption to those licenses would have a direct impact on its broadcast operations.

The outcome of the case could also influence how the FCC handles reviews of broadcast licenses for other major networks.

The lawsuit marks one of the more direct legal confrontations between a major media company and a federal regulator in recent years. Disney is asking the court to intervene before the license review process moves forward.

As of Tuesday morning, no court date had been set. The immediate question ahead is whether the court will grant Disney’s request to pause the FCC’s license review while the broader case proceeds, and how the commission formally answers the lawsuit’s First Amendment claims.