Court Backs Fcc Ownership Caps

Reaction to the Supreme Court's June 13 decision not to review Federal Communications Commission ownership rules has fallen along predictable lines.

Critics of media consolidation are expressing delight. Meanwhile, executives at radio, TV and newspaper conglomerates say they need new rules to compete with cable, satellite and online entities, and will look to new FCC chairman Kevin Martin to relax ownership limits.

At issue is further consolidation of U.S. media companies. As conglomerates have grown during the past few years, studies have shown that local programming, including music options, has diminished. Former FCC chairman Michael C. Powell introduced the proposal to remove market limitations in 2003; within days, public interest group the Prometheus Radio Project filed suit to block the action, and legislators on both sides of the aisle expressed disapproval. The June 13 decision stayed last summer's ruling by the U.S. Third Circuit Court of Appeals that kept limitations in place.

Now the same media companies that petitioned the courts to remove ownership limits are expected to press Martin to jettison the cross-ownership rule—which limits the number of radio stations, TV channels and newspapers one company can own in a given market—and the national ownership cap of eight broadcast stations in a single large market.



'NAIL IN THE COFFIN'

Such all-out deregulation in the wake of the discredited Powell effort will face close scrutiny on Capitol Hill. Lawmakers from both parties have been skeptical of removing ownership limits. Democrats in particular applauded the court's denial of an appeal.

"The Supreme Court's action is the final nail in the coffin for the misguided FCC rules," Sen. Russ Feingold, D-Wis., says. "Rather than advancing the interests of media conglomerates, the FCC needs to listen to the people across this country who are calling out for more, not less, localism and diversity in television and radio."

Sen. Byron Dorgan, D-N.D., who authored a congressional resolution of disapproval of the Powell rules shortly after the FCC adopted them, characterized them as "a complete cave-in to special interests. They would have allowed a dangerous concentration of radio, television and newspapers."

Republican senator Trent Lott of Mississippi co-authored that resolution.

Martin, a Republican, issued a statement revealing little about likely policy directions: "I am now looking forward to working with all of my colleagues as we re-evaluate our media ownership rules."

However, Democratic commissioner Jonathan S. Adelstein, who had criticized the rules, says the Supreme Court denial shows that the FCC needs "to involve the public and Congress more fully in our deliberations. We need to hold public hearings across the country and call for more studies from experts and academics."

Michael Bracy, who handles government relations for the indie-artist-driven Future of Music Coalition, says the court's decision "symbolizes the end of the traditional way that media policies have been made in this country." He says the commission should move forward "with a transparent and open dialogue with the public."

Though disappointed with the decision, Shaun Sheehan, a Washington, D.C.-based VP for Tribune Co. (owner of the Chicago Tribune and Los Angeles Times, among other media entities), is confident that cross-ownership in major markets will ultimately win government approval. "Somewhere down the line, we get [cross-ownership] relief," Sheehan says, noting that what level of expediency can be expected from the FCC remains in question.

Newspaper Assn. of America president/CEO John Sturm says his organization is "looking forward to the FCC opening a proceeding" to deal with the cross-ownership issue, "because every day that goes by, newspapers face more competition, because every day that goes by, there are more media choices." ••••