What Is the Federal Communications Commission (FCC)?

What Is the Federal Communications Commission (FCC)?

Let me explain what the Federal Communications Commission, or FCC, really is. It's an independent U.S. government agency that oversees all interstate and international communications. I want you to know that the FCC maintains standards and consistency among different types of media and communication methods, all while protecting the interests of consumers and businesses. It allocates cellular and wireless access, regulates mergers and acquisitions for media companies, protects intellectual property rights, and sets standards for content and distribution for all media companies operating in the United States.

The agency reports directly to the U.S. Congress, and its actions are watched closely by investors.

Understanding the Federal Communications Commission (FCC)

You should understand that the Federal Communications Commission was established in 1934 as part of the Communications Act, which is a law regulating domestic and foreign wire and radio communications. This law has been expanded over time to include satellite, television, and broadband communications. The agency's reach covers the 50 states, the District of Columbia, and every U.S. territory.

The FCC is the key authority in the United States for overseeing communications law, regulation, and innovation in the technology sector. Its mission is to advance the global communications industry through economic support to ensure competition in the sector, revising media regulations to allow new technologies to thrive, promoting competition, innovation, and capital investment in broadband networks, and strengthening the national communication infrastructure.

The agency is led by a chair, who is one of five commissioners appointed by the president. Each commissioner gets confirmed by the Senate and serves a five-year term. There are nearly 1,500 employees divided into various bureaus and offices that handle different aspects of the commission's duties.

The FCC's actions affect both public and private companies involved in communications. That's why stock market investors monitor its decisions closely, as the regulations and resolutions can directly impact corporate business lines and your investments.

Important Note on Commissioners

Commissioners cannot have a financial interest in any business regulated by the FCC to prevent conflicts of interest.

FCC Regulations

The agency's regulatory powers include setting manufacturing standards for communications equipment, establishing decency standards in radio and television broadcasts, and ensuring competition. The commission has an Office of Administrative Law Judges that hears disputes and issues decisions interpreting the agency's regulations.

Tasked with enforcing the Communications Act and FCC regulations, the enforcement bureau conducts investigations, levies fines, and initiates administrative judgments against violators.

FCC Approvals

The FCC's rulemaking and regulation process uses what's called the 'notice and comment' process. The agency gives the public notice, allowing you to submit comments before rules are established, amended, or developed. These procedures can have wide-ranging effects on the competitive balance in the communication market.

Mergers and acquisitions for communications companies require FCC approval. This process protects consumers and prevents monopolies, but it can create uncertainty for companies and investors during review. Some deals don't get approval, leading to further uncertainty.

The FCC has long held significant regulatory powers over radio, television, and telephone providers. In 2015, it extended its reach to broadband internet service providers by classifying them as common carriers under Title II of the Communications Act.

That decision to classify broadband providers as common carriers came from a three-to-two vote along party lines. This shows how the political affiliation of appointed commissioners can affect the regulatory interpretation.

The FCC Under President Trump

The agency is currently headed by chair Brendan Carr, appointed by President Donald Trump on Jan. 20, 2025. Before that, Carr had been a member of the FCC since 2017 and served as the FCC general counsel and aide to a former commissioner.

Net Neutrality

Net neutrality was a policy that stopped internet service providers from slowing or blocking access to the internet or charging more for certain content. First put in place by the Obama administration, it allowed the FCC to regulate the internet like a public utility, ensuring ISPs provide equal and non-discriminatory access.

The Trump administration's FCC repealed the policy in his first term, but the Biden administration's FCC brought it back. However, in 2024, a trade group for ISPs appealed and got a federal appeals court to pause the regulations while deciding the case. In January 2025, the court sided with the trade group and ruled that the FCC had no authority to impose net neutrality rules.

Why Was the FCC Created?

The Federal Communications Commission was established to regulate interstate and international wire and radio communications. This mandate expanded to include satellite, television, wireless, and broadband communications. The FCC governs communications in all 50 states, the District of Columbia, and every U.S. territory.

When Was the FCC Created?

The FCC was created in 1934 as part of the Communications Act of 1934.

What Does Net Neutrality Mean?

Net neutrality was a policy adopted by the Obama administration in 2015 to prevent internet service providers from blocking content or slowing down access. Instead, these companies had to provide equal access to online content. It was eliminated under Trump, reinstated under Biden, and struck down by an appeals court in 2025.

Who Controls the FCC?

The FCC is an independent U.S. government agency that answers to the United States Congress.

The Bottom Line

The Federal Communications Commission was established in 1934 under the Communications Act. It serves the interests of corporations and consumers by regulating communications networks, including access, competition, innovation, and maintaining consistency in the media landscape and communication methods. Its decisions can influence the stock market, so investors keep a close eye on its actions.