FCC officials took pricey gifts from Paramount as company awaited merger approval
Federal Communications Commission officials are facing scrutiny for accepting high-value gifts from Paramount while the agency evaluated critical regulatory decisions. FCC Chair Brendan Carr and Commissioner Olivia Trusty attended the Kennedy Center Honors gala in December as guests of the broadcast network. Records indicate Trusty accepted tickets valued at over 12,000 dollars, while Carr sat in a private skybox with Paramount executives. These seats carried a market value of 125,000 dollars per ticket according to event guidelines.
Ethics experts state that accepting these gifts compromises the impartiality of the FCC. Federal rules generally prohibit employees from taking items of value from entities that seek official agency action. The gala appearance occurred while Paramount was pursuing a hostile takeover bid for Warner Bros. Discovery, a transaction requiring FCC approval. Critics argue these commissioners should recuse themselves from future votes on the merger to preserve public trust in the regulatory process.
This is not a new practice. A review of decade-long disclosure records reveals that seven of the ten commissioners who served since 2016 accepted tickets from CBS or Paramount totaling more than 260,000 dollars. While the FCC maintains these appearances fall under a widely attended gathering exemption, former ethics lawyers argue that performing arts galas do not meet the legal criteria for such exceptions. The agency has not yet provided written authorizations for these specific gifts when requested.
The regulatory situation remains sensitive. The Paramount Skydance merger consolidated significant portions of the media landscape, and the proposed Warner Bros. deal faces opposition from multiple state attorneys general. The commission currently operates with only three of its five seats filled. Because a quorum requires three commissioners, any recusal could theoretically stall a formal vote, leading to speculation that leadership might delegate final approval to agency staff to circumvent the issue. Legal scholars warn that such ethical clouds jeopardize the survival of these corporate deals in court.