# Federal Communications Commission (FCC): Mission and Role

![FCC logo above chair](https://www.investopedia.com/thmb/6RE_VUN-QsLLVestWcxrTonUU1o=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-892269224-28237b010ff846379f8ac14eaea8091c.jpg)

*— Bloomberg / Getty Images *

## What Is the Federal Communications Commission (FCC)?

The Federal Communications Commission (FCC) is an independent U.S. government agency that oversees all interstate and international communications. The FCC maintains standards and consistency among types of media and methods of communication while protecting the interests of consumers and businesses. It allocates cellular and wireless access, regulates media company mergers and acquisitions (M&A), protects intellectual property rights, and regulates standards of content and distribution for all media companies operating in the United States.

The agency is accountable to the U.S. Congress, and its actions are monitored closely by investors.

### Key Takeaways

*   The FCC is an independent U.S. government agency that answers to the United States Congress.
*   The FCC oversees all interstate and international communications.
*   It also maintains standards and consistency among media types and communication methods while protecting the interests of consumers and businesses.
*   The FCC is headed by a chair, who is one of five commissioners appointed by the president.

## Understanding the Federal Communications Commission (FCC)

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. The law was further expanded to include satellite, television, and broadband communications. The agency's reach extends across the 50 states, the District of Columbia, and every U.S. territory.

The FCC is considered the key authority in the United States that oversees communications law, regulation, and innovation in the technology sector. Its mission is to help advance the global communications [industry](https://www.investopedia.com/terms/i/industry.asp) through:

*   economic support to ensure there is enough competition in the communications [sector](https://www.investopedia.com/terms/s/sector.asp)
*   the revision of media regulations to allow new technologies to thrive
*   the promotion of competition, innovation, and capital investment in broadband networks
*   the strengthening of the national communication infrastructure

The agency is headed by a chair, who is one of five commissioners appointed by the president. Each commissioner is confirmed by the Senate and serves a five-year term. Nearly 1,500 employees are divided into numerous bureaus and offices that focus on different aspects of the commission's duties.

The FCC's actions affect public and private companies that engage in communications. Because of this, its decisions are closely monitored by stock market investors. That's because the regulations and resolutions adopted by the agency have a direct impact on corporate business lines and, therefore, people's investments.

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

## FCC Regulations

The agency's regulatory powers include setting [manufacturing](https://www.investopedia.com/terms/m/manufacturing.asp) standards for communications equipment, establishing decency standards in radio and television broadcasts, and ensuring competition. The commission also includes an Office of Administrative Law Judges that hears disputes and issues decisions interpreting the agency's regulations.

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

## FCC Approvals

The FCC's rulemaking and regulation process is established through what's called the "notice and comment" process. The agency provides the general public with notice, allowing people to submit comments before any rules are established, amended, or developed. These procedures may have wide-ranging effects on the competitive balance in the communication market.

The merger and acquisition activities of communications companies require FCC approval. While this approval process is designed to protect consumers and prevent [monopolies](https://www.investopedia.com/terms/m/monopoly.asp), it occasionally creates uncertainty for companies and investors while FCC approval is under review. Some don't actually receive approval, which can result in uncertainty for these companies.

The FCC has long wielded significant regulatory powers with radio, television, and telephone providers. In 2015, the commission extended its reach to include broadband [internet service providers](https://www.investopedia.com/terms/i/isp.asp) (ISPs) by classifying the companies as common carriers under Title II of the Communications Act.

The commission's decision to list broadband providers as common carriers occurred via a three to two vote that was along party lines. This vote highlights the potential effect the political affiliation of appointed commissioners can have on the regulatory interpretation of the commission.

## The FCC Under President Trump

The agency is headed up by chair Brandon Carr, who was appointed by President Donald Trump on Jan. 20, 2025. Prior to his appointment, 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](https://www.investopedia.com/terms/n/net-neutrality.asp) was a policy that prevented internet service providers (ISPs) from slowing or blocking access to the internet or charging more for certain content. First instituted by the Obama administration, the policy allowed the FCC to regulate the internet as if it were a public utility, ensuring that ISPs give users "equal and non-discriminatory access" to the internet.

Though the Trump administration's FCC repealed the policy (in his first term), the Biden administration's FCC reversed course, implementing net neutrality once again.

However, in 2024, a trade group representing ISPs launched an appeal and convinced a federal appeals court to pause the regulations while the case was being decided. In January 2025, the court sided with the trade group and declared that the FCC had no authority to impose net neutrality rules.

## Why Was the FCC Created?

The Federal Communications Commission was established in order to regulate interstate and international wire and radio communications. This mandate was 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 that was adopted by the Obama administration in 2015 that aimed to prevent internet service providers from blocking content and slowing down access to the internet. Instead, these companies were required to provide equal access to online content. The policy was eliminated under the Trump administration, reinstated under the Biden administration, and finally [struck down by an appeals court in 2025](https://www.investopedia.com/the-evisceration-of-net-neutrality-8770956).

## 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 as part of the Communications Act. It aims to serve the interests of corporations and consumers by regulating the actions of communications networks, including the access they provide, competition and innovation in the industry, and maintaining consistency throughout the media landscape and methods of communication. Its decisions can influence the stock market, which is why investors monitor its actions.

> **Article Sources**
>
> 1.  Federal Communication Commission. "[Communications Act of 1934](https://transition.fcc.gov/Reports/1934new.pdf)."
>     
> 2.  Britannica. "[Communications Act of 1934](https://www.britannica.com/event/Communications-Act-of-1934)."
>     
> 3.  Federal Communications Commission. "[What We Do](https://www.fcc.gov/about-fcc/what-we-do)."
>     
> 4.  Federal Communications Commission. "[Rulemaking Process](https://www.fcc.gov/about-fcc/rulemaking-process)."
>     
> 5.  Congressional Research Service. "[The Federal Communications Commission in the Biden Administration: Issues and New Directions](https://crsreports.congress.gov/product/pdf/IF/IF11720)," Page 1.
>     
> 6.  Federal Communications Commission. "[Brendan Carr](https://www.fcc.gov/about/leadership/brendan-carr)."
>     
> 7.  United States Court of Appeals for the Sixth Circuit. "[Upon Multi-Circuit Petitions for Review of the Federal Communications Commission’s Safeguarding and Securing the Open Internet Order, FCC 24-52](https://www.opn.ca6.uscourts.gov/opinions.pdf/25a0002p-06.pdf)."