Key facts
- FCC Chair Brendan Carr and Commissioner Olivia Trusty accepted gifts from Paramount Global.
- The gifts included tickets to the Kennedy Center Honors gala, valued at over $12,000 for Trusty.
- Carr and his wife attended the event in a private skybox with Paramount executives.
- The acceptance of gifts occurred while Paramount was seeking FCC approval for its merger with Skydance Media.
- Ethics experts argue these actions create a conflict of interest and undermine public trust.
Federal Communications Commission (FCC) Chair Brendan Carr and Commissioner Olivia Trusty accepted valuable gifts from Paramount Global, including tickets to the Kennedy Center Honors gala, while the company sought regulatory approval for a significant merger. Trusty received tickets worth over $12,000, while Carr and his wife occupied a $125,000-per-ticket skybox with Paramount executives.
Ethics experts have strongly criticized these actions, stating that accepting gifts from companies regulated by the FCC creates a blatant conflict of interest and compromises the commission's impartiality and public trust. Walter Shaub, former head of the Office of Government Ethics, called the justification for accepting gifts outrageous, emphasizing that such behavior is unacceptable for federal regulators.
The FCC's review is a critical step for Paramount's proposed $8 billion merger with Skydance Media, a deal that is part of a larger $110 billion consolidation of major film studios. The proposed merger has faced significant opposition from within Hollywood and is under scrutiny by various state and international regulators for potential anti-monopoly and national security implications.
Past disclosures reveal that seven FCC commissioners have accepted tickets from CBS or its parent company over the last decade, totaling over $260,000. An FCC spokesperson stated that agency ethics officers have consistently cleared such appearances, deeming them consistent with ethics law across multiple administrations. However, ethics experts argue that past practices do not excuse current conflicts of interest and that Carr and Trusty should recuse themselves from decisions affecting the Paramount merger.