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U.S. Justice Department opposes urgent hearing in Disney-ABC license dispute

Justice Department urges delay on FCC's potential license review, arguing Disney and ABC should first present their case in an administrative process.

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Lucas Ferreira · Deals & Startups Desk · 21 Aug 2026 · 13:06 · 1 min read
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U.S. Justice Department opposes urgent hearing in Disney-ABC license dispute

The U.S. Justice Department has opposed an immediate court hearing sought by Disney in its legal challenge against the Federal Communications Commission’s potential revocation of ABC’s broadcast licenses. In a filing on Thursday, the department argued that a judge should not schedule an urgent hearing on Disney’s request for a temporary restraining order, stating that the FCC’s proposed action does not constitute a sanction but would instead trigger a formal administrative proceeding where Disney and ABC could present their defense.

Disney and ABC had petitioned U.S. District Judge Loren AliKhan on Tuesday to hold a hearing by next week on their request for a temporary restraining order. The companies claim the FCC is attempting to retaliate against ABC for refusing to air a prime-time speech by former President Donald Trump, describing the agency’s actions as an "extraordinary assault on free speech." They also argued that the FCC’s 48-hour notice requirement before issuing a hearing designation order effectively allows it to impose "draconian sanctions" without adequate due process.

The Justice Department countered that the FCC’s process is procedural, not punitive, and that Disney and ABC would have the opportunity to contest any allegations during the administrative review. The dispute stems from a two-year-long conflict between Trump and Disney over the network’s coverage of election-related events, which escalated last month when Trump again called for ABC stations to lose their licenses.

The FCC, led by Chair Brendan Carr, has maintained that the lawsuit is meritless. The agency has also agreed to provide Disney with at least 48 hours’ notice before formally referring the matter for a hearing, a procedural safeguard Disney has criticized as insufficient.

This article was produced with AI assistance and edited by a Finance Review Daily journalist.
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Written by
Lucas Ferreira
Deals & Startups Desk

Lucas covers M&A activity and startup funding rounds, tracking deal structures and valuations to explain what a transaction means for the companies and markets involved.

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