FCC Chairman Tom Wheeler isn’t seen as having made a decision on Comcast’s proposed buy of Time Warner Cable, said analysts, cable industry and public interest officials in interviews this week. Ex-FCC Chief of Staff Blair Levin doesn’t believe a decision on the merger has yet been made, he said in a conference call. The Department of Justice will decide if the deal should be approved, he said. Wheeler “may know where he’s leaning” but it’s “inconceivable” he would decide the fate of the deal before the Sept. 23 due date for Comcast and TWC’s opposition filings, said Georgetown Law Institute for Public Representation Senior Counselor Andrew Schwartzman. The FCC is also awaiting responses from Comcast, Charter Communications and TWC to the Media Bureau’s detailed information requests related to the deal and to Charter’s buying divested systems (WID Aug 26 p5), which were due Thursday, Schwartzman said. “Even if he made a decision, he doesn’t necessarily have the three votes” needed for a majority vote on the FCC, Schwartzman said.

NAB’s legal challenge of an FCC Media Bureau public notice announcing processing guidelines for deals involving TV broadcaster sharing arrangements was dismissed by the U.S. Court of Appeals for the D.C. Circuit. NAB’s petition for review was dismissed because the PN was issued on delegated authority, and should have been challenged at the commission-level before being brought to the court, said a D.C. Circuit order. To obtain judicial review of an order issued by FCC staff pursuant to delegated authority, the association was required to fulfill the “condition precedent” of filing an application for review by the FCC of the bureau’s decision, and to wait until the FCC ruled on the application, the order said. The difficulty of obtaining judicial review of the processing guidelines was likely why they were issued under delegated authority, industry attorneys had told us (CD March 14 p9). Since the FCC has to vote to hear applications for review of bureau-level decisions, they can be indefinitely stalled, the attorneys said. NAB had argued that several letters filed with the FCC asking it to review the processing guidelines were a sufficient stand-in for an application for review (CD June 5 p16) but the court disagreed. Because of the dismissal, a motion from Prometheus Radio Project and other groups to consolidate the case with the other sharing arrangement proceedings was declared moot in the same order. Associated court challenges by the NAB to the FCC’s rules for attributing joint sales agreements and by Prometheus to the closing of the 2010 quadrennial review remain active, said Georgetown Law Institute for Public Representation Senior Counselor Andrew Schwartzman, who represents Prometheus.

The FCC Enforcement Bureau under Chairman Tom Wheeler and acting Chief Travis LeBlanc has shown a willingness to go after companies that violate agency rules with more aggressiveness than in the past, said agency and industry officials in recent interviews. They said LeBlanc has taken a particularly hard line, refusing to consider reductions in penalties if a company won’t acknowledge wrongdoing and declining to allow language in consent decrees that a company was making a “voluntary” contribution to the government as part of the agreement. The latter change is significant since “voluntary” contributions can often be deducted as business expenses on tax returns, but the Internal Revenue Code explicitly forbids deduction of penalties.

Common Cause said the FCC should review the Media Bureau’s decision to dismiss complaints against stations owned by Allbritton and Sander Media for allegedly identifying front groups incorrectly as the “true sponsors” of political advertisements. The commission is “shirking its responsibility to enforce the longstanding federal law requiring broadcasters to disclose the ’true identity’ of the sponsors of political advertising,” Common Cause said in a news release (http://bit.ly/1unNRU5). It’s one thing that the “congressional gridlock precludes passage of laws to right the many wrongs our special interest political culture faces,” former FCC commissioner and Common Cause special adviser Michael Copps said in the release. It’s infinitely worse “to ignore laws already on the books that enable us to tackle these problems,” he said. This year, Common Cause, the Campaign Legal Center and the Sunlight Foundation filed the complaints against Allbritton-owned ABC affiliate WJLA-TV Washington, D.C., (http://bit.ly/1oIOaDq) and Sander’s KGW-TV Portland, Oregon (http://bit.ly/1mlDLw8). The stations allegedly attributed political ads to political action committees (PACs) instead of identifying the true sponsors, the groups said (http://bit.ly/Z8JiCv). The complaints don’t provide a sufficient showing “that the stations had credible evidence casting into doubt that the identified sponsors of the advertisement were the true sponsors,” the bureau said in a letter to Andrew Schwartzman, the attorney for the groups (http://bit.ly/1waY6eM). The complainants’ theory is understandable, but “whether it is legally correct is another story,” a broadcast attorney said. While Section 317 of the Communications Act refers to “persons,” that term isn’t limited to individuals, but must also include legal entities, Fletcher Heald attorney Harry Cole said in a blog post (http://bit.ly/1Abbtfm). As long as the PACs were properly identified, that arguably satisfied Section 317, he said. In tossing the complaints, the bureau didn’t address other concerns, like who is a “true sponsor” if it isn’t the entity signing the check, he said. It also isn’t clear in what cases the donors should be identified as the true sponsors “and when the PAC itself is properly identified as the sponsor,” Wilkinson Barker broadcast attorney David Oxenford said in a blog post (http://bit.ly/1qAk2OC). The decision will likely be used as a tool to make broadcasters think twice about taking third-party political advertising money, he said.

The FCC lacks Communications Act Section 706 authority to pre-empt state laws that pose obstacles to municipal broadband projects, said groups including the National Conference of State Legislatures (NCSL). USTelecom flipped the debate, arguing that the agency should use the pre-emption authority it does have to remove local governments’ barriers to private investment.

The FCC lacks Communications Act Section 706 authority to pre-empt state laws that pose obstacles to municipal broadband projects, said groups including the National Conference of State Legislatures (NCSL). USTelecom flipped the debate, arguing that the agency should use the pre-emption authority it does have to remove local governments’ barriers to private investment.

Gray Television will transfer six TV stations to new minority and female owners through deals brokered by MMTC Media and Telecom Brokers, the brokerage arm of the Minority Media and Telecommunications Council, said the broadcaster in a news release Wednesday (http://bit.ly/1vStuhY). The stations had been operated under shared service agreements, all of which were unwound as part of the transfers, Gray Senior Vice President-Business Affairs Kevin Latek told us. “This proves that Sinclair didn’t have to turn in its licenses” for stations involved in sharing arrangements that were part of its deal to buy Allbritton’s TV stations, Georgetown Law Institute for Public Representation Senior Counselor Andrew Schwartzman told us. In working to sell the stations, MMTC was allowed to market them to “socially disadvantaged enterprises, such as businesses controlled by women, minorities, or innovative new entrants, or non-profit entities such as a school or religious institutions,” Gray said. The company said its KXJB-TV Fargo, North Dakota, will be transferred to Major Market Broadcasting, which airs programming from Diya TV, “America’s first South Asian broadcast television network.” KJCT-TV Grand Junction, Colorado, will be transferred to Jeff Chang and his wife Gabriela Gomez-Chang, and broadcast programming targeted toward the Hispanic population, said Gray. Female owned Legacy Broadcasting, a new company, will buy KHAS-TV Hastings, Nebraska, KAQY-TV Monroe, Louisiana, and North Dakota’s KNDX-TV Bismarck and KXND-TV Minot, said Gray. It’s “shown how a corporation can deploy its assets creatively for the great benefit of the industry and the public,” said MMTC President David Honig. FCC Chairman Tom Wheeler said he applauds Gray and MMTC’s “commitment” to finding buyers that increase diversity of ownership and programming. “Such actions demonstrate how our rules can actively promote both competition and diversity, keep stations on the air, and serve the public interest,” Wheeler said in a statement (http://fcc.us/1vStX3R

Those wanting the FCC to deny Comcast’s planned buy of Time Warner Cable are likely to be disappointed when the agency likely approves it with conditions, cable operator and programmer officials told us Wednesday. Though several powerful commenters, including Dish Network, asked the FCC to deny the transaction, many others suggested possible conditions, said an industry official. Many other influential entities, such as large content companies and NAB, didn’t weigh in for or against the deal. “It’s very dangerous to come out against this deal because of the amount of influence Comcast will have if it’s approved,” said Georgetown Law Institute for Public Representation Senior Counselor Andrew Schwartzman, who filed comments opposing Comcast/TWC.

Those wanting the FCC to deny Comcast’s planned buy of Time Warner Cable are likely to be disappointed when the agency likely approves it with conditions, cable operator and programmer officials told us Wednesday. Though several powerful commenters, including Dish Network, asked the FCC to deny the transaction, many others suggested possible conditions, said an industry official. Many other influential entities, such as large content companies and NAB, didn’t weigh in for or against the deal. “It’s very dangerous to come out against this deal because of the amount of influence Comcast will have if it’s approved,” said Georgetown Law Institute for Public Representation Senior Counselor Andrew Schwartzman, who filed comments opposing Comcast/TWC.

FCC proceedings on petitions to pre-empt North Carolina and Tennessee laws on municipal broadband are likely to become a showdown about the extent of the commission’s authority under Communications Act Section 706 and the applicability of the Supreme Court’s 2004 decision in Nixon v. Missouri Municipal League, industry observers told us. The FCC is reviewing pre-emption petitions from Chattanooga, Tennessee, and Wilson, North Carolina. Matthew Berry, chief of staff to FCC Commissioner Ajit Pai, said in a speech Wednesday that the FCC’s authority to pre-empt state laws municipal broadband laws under Section 706 was weak and that the precedent the Supreme Court set in Nixon would likely doom pre-emption in court (CD Aug. 21 p10).