Likely Trends in U.S. Tech and Media Regulation Under the New Trump Administration

With U.S. President Trump returning to the White House, we expect the regulatory landscape facing technology and communications companies to shift significantly, if not uniformly.

On the one hand, media and telecommunications companies that have long been regulated heavily by the FCC can likely expect a more deregulatory environment than they have experienced under the Biden Administration (with potential caveats). On the other, large technology companies, which have largely avoided heavy-handed regulation, can expect to face a more active regulatory environment aimed at limiting or preventing content moderation decisions that the incoming Administration has characterized as "censorship" of conservative viewpoints. Meanwhile, bipartisan priorities-such as the commitment to ensuring national security in the telecommunications sector-will likely continue to be a major focus of regulatory agencies. While the assessments of regulatory risks and opportunities will continue to be refined and updated as the next Trump administration takes shape, we highlight here a few trends that are likely to influence policy and regulation at the FCC over the next four years.

Changes in Regulation: Deregulation for Some, Greater Scrutiny for Others

FCC Commissioner Brendan Carr, who is the frontrunner to be named the next Chair of the FCC, has a long history of public statements supporting deregulation of the industries historically regulated by the FCC. For instance, Carr has observed in the past that "rapidly evolving market conditions counsel in favor of eliminating many of the heavy-handed FCC regulations that were adopted in an era when every technology operated in a silo." This likely means that we can expect to see a Republican-led FCC seeking opportunities to loosen regulations on broadcasters, the pay TV industry, and internet service providers, ranging the gamut from reform of broadcast licensee ownership restrictions to repealing (or supporting the court reversal of) the Biden-era net neutrality order.

However, other industries under the FCC's umbrella may face greater scrutiny. In particular, we anticipate that the FCC's interest in national security policymaking will continue to grow, as Commissioner Carr has highlighted issues such as curbing the influence of foreign nations on social media platforms and expanding the FCC's list of providers of communications equipment and services that pose an unacceptable risk to the national security of the U.S. This interest could expand beyond traditional telecommunications providers to other technology enterprises, such as those that offer high-powered cloud computing services to customers in China and elsewhere.

Different Approach to Transaction Reviews

With the strong economic headwinds facing traditional, linear media, we expect a Republican-led FCC will be more open to consolidation as a strategy for growth, if not survival. This openness may materialize through the Commission's quadrennial review of its media ownership rules, or through standalone rulemakings, such as the still-pending proceeding from the last Trump administration considering whether the FCC should revise the national ownership cap for broadcast television and the UHF discount. As a result, we also expect that the FCC will be more receptive to a broader range of media transactions than in the recent past. Looking beyond the media sector, it is possible that this openness could extend to wireless and satellite communications companies, reflecting the rapidly shifting dynamics in the communications market as information and entertainment is delivered to consumers in new ways.

Pressure on Tech Companies to Play a More 'Neutral' Role in Public Debates

Both President-elect Trump and Commissioner Carr have been vocal in support of government action to reign in perceived abuses by large technology companies. In a video about President Trump's "plan to shatter the left wing censorship regime" originally posted in 2022 but recently reshared by Elon Musk on X (f/k/a Twitter) and Robert F. Kennedy Jr. on YouTube, the President-elect said that he would ask the Congress to enact reforms to Section 230 and adopt a Digital Bill of Rights, among other actions aimed at prohibiting and/or mandating certain content moderation policies by the largest technology companies. For example, President-elect Trump said that "all users over the age of 18 should have the right to opt out of content moderation and curation entirely and receive an unmanipulated stream of information if they so choose." Commissioner Carr has expressed support for specific policies along these lines that would reduce the scope of immunity granted by the Section 230 safe harbor and increase transparency into search and content moderation decisions. In short, the incoming Administration very likely will continue to put pressure on technology companies to play less of a role in content moderation, in tension with trends in other regions (including Europe and Brazil, for example) and some state-level trends. This means that technology companies will have to navigate these federal policies against competing policy objectives originating from "blue" states like California and regulators in Europe and elsewhere.

One area where administration policy may ultimately align with European regulatory pressures could be on reforms to the Universal Service Fund (USF). Republican policymakers, including Commissioner Carr, have long argued that the large tech platforms-such as social media platforms, search engines, and streaming services-have been "free-riders" with regard to the funding mechanisms for major telecom programs through the USF. And as the pool of eligible contributors to the USF continues to shrink, practical pressures will ultimately require changes to the existing funding mechanism. We expect that a Republican Congress and FCC will actively explore measures to require these platforms to make contributions to support these programs directly.