The Walt Disney Company (DIS)’s ABC Is Suing the FCC. A Judge Just Told it to Slow Down

The Walt Disney Company (DIS)’s ABC Is Suing the FCC. A Judge Just Told it to Slow Down

Fri, August 28, 2026 at 8:36 PM GMT+3 3 min read

• DIS +0.91%

The Walt Disney Company (NYSE:DIS)'s ABC filed a First Amendment lawsuit against the Federal Communications Commission on August 18, 2026, calling the agency's investigation into the network a "retaliatory campaign." A federal judge rejected Disney's request for an urgent hearing on August 20, 2026, setting a filing deadline of September 24 and a hearing in early October instead.

Why This Matters

This fight has become a real test of broadcasters' free speech rights, playing out as President Trump has repeatedly called for ABC to lose its licenses over programming he dislikes.

Can Disney actually win a First Amendment case against its own federal regulator, or does fighting the FCC risk making its licensing problems worse?

Strong Earnings Anchor Disney in High-Stakes FCC Clash

The FCC has already agreed to give The Walt Disney Company (NYSE:DIS) at least 48 hours' notice before referring ABC's licenses for a hearing, a procedural concession that removes the risk of a sudden license action. Commissioner Anna Gomez has publicly sided with ABC, giving Disney a sympathetic voice inside the regulator. The lawsuit leans on a unanimous 2024 Supreme Court precedent limiting government pressure on private speech.

On fundamentals, Disney enters this fight strong: companywide revenue grew 7% to $25.2 billion in fiscal Q3, and segment operating income rose 21% to $5.6 billion, ahead of guidance. Disney Experiences hit a record $9.97 billion, up 10%, while streaming reached a 13% SVOD margin and stays on track for double digits this year. That combination means ABC's legal exposure sits inside a company whose two biggest growth engines are firing together. A win would set a precedent limiting political pressure on Disney's other broadcast assets.

Delayed Relief: Disney's ABC Battle Dragged Out in Court

The judge's refusal of an urgent hearing signals a slower, less favorable timeline than The Walt Disney Company (NYSE:DIS) wanted, and FCC Chairman Brendan Carr has called the lawsuit meritless, showing no sign of backing down. The license review stays fully active with no resolution date, so the cloud over all eight ABC stations persists regardless of the lawsuit's outcome. ABC sits inside The Walt Disney Company (NYSE:DIS)'s Entertainment segment, and that segment's 6% growth to $11.35 billion in fiscal Q3 leans heavily on streaming gains and price hikes, not the broadcast network.

Conclusion

Disney has political and legal allies in this fight. Nonetheless, the judge's early ruling shows this case will move on the court's timeline, not Disney's, adding months of uncertainty either side has to sit through.

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Disclosure: None. This article is originally published at Insider Monkey.