Verizon has to go back on a change it already made for its Frontier acquisition to move forward

Verizon has been trying to acquire Frontier Communications for over a year now – the FCC approved the $20 billion deal in May 2025 – but Big Red must now do what it promised not to do.

California's way

The state of California has been the biggest obstacle to Verizon's acquisition of Frontier. This week, an administrative law judge recommended that the California Public Utilities Commission approve the deal, as long as Verizon accepts a set of requirements.

The recommendation follows an earlier agreement between Verizon and the CPUC's Public Advocates Office, which said Verizon still needed to do more to meet California's diversity, equity and inclusion (DEI) rules.

The issue became more complicated after Verizon told the FCC it would roll back most of its DEI programs, a move tied to pressure from the Trump administration. Those changes satisfied federal regulators but clashed with California law.

State officials argue that FCC guidance does not override California statutes. In their view, Verizon made commitments at the federal level that do not automatically work under state rules, and the company now has to adjust if it wants approval. A bit of a paradox situation!