SUMMARYDisney and ABC filed a lawsuit in U.S. District Court in Washington seeking to block the FCC from holding an early review of eight broadcast licenses. The companies argue the agency is retaliating over editorial decisions and violating their First Amendment rights, while the FCC says its actions stem from an investigation into Disney’s diversity policies. U.S. District Judge Loren AliKhan ordered both sides to propose a schedule for the restraining-order request and to notify the court if the FCC moves toward revoking the licenses.

Disney and ABC are suing the FCC to block an early review of eight station licenses, arguing the Trump administration is using the agency's regulatory power to punish the network over programming and editorial decisions it dislikes. Reuters reports: In a lawsuit (PDF) filed in U.S. District Court in Washington, Disney said the FCC was seeking to coerce and retaliate against "a network that refuses to bow to the administration's demands," calling the agency's actions an "extraordinary assault on free speech."

Trump has waged an aggressive series of attacks on the news media and the latest move follows a two-year-long battle between Trump and Disney. Last month, Trump again called for ABC stations to lose their licenses because the network refused to air a prime-time speech on elections. The court case will pose a key test of the free speech rights of media outlets. Disney and ABC asked the court (PDF) to quickly issue a temporary restraining order halting the license renewal proceedings and preventing the FCC from scheduling a hearing. The company said the public comment period ended earlier this month and the FCC could act at any time.

The lawsuit alleges that the administration is violating the company's First Amendment free speech rights, saying that the FCC "is using its regulatory power to retaliate against (Disney and ABC) for programming and editorial decisions the administration dislikes." The FCC said the move stemmed from a year-long investigation into whether Disney's diversity policies amounted to unlawful discrimination, an allegation the company denies. U.S. District Judge Loren AliKhan issued an order on Tuesday directing the company and the FCC to propose a schedule for considering the request for a temporary restraining order and told the agency to notify her if it moves to start the process of revoking the ABC licenses.