The FCC and NAB disagreed in court filings this week about how last week’s 11th U.S. Circuit Court of Appeals ruling upholding the FCC’s forfeiture order against Gray Media applies to the broadcaster challenge of the 2018 quadrennial review order in the 8th Circuit. Oral argument in that case is set for March 19. The 11th Circuit ruled against Gray, saying Note 11 -- an FCC rule against broadcasters swapping network affiliation to get around ownership limits -- doesn’t violate the Communications Act or the First Amendment (see 2503070004. The 8th Circuit petitioners, which include Zimmer Radio, Nexstar, NAB, Beasley Media and Tri-State Communications, have made similar arguments against Note 11 in their filing opposing the 2018 QR, which expanded the reach of the rule to include low-power stations and multicast streams.
Broadcast ownership rules are helping strangle local news and must go, FCC Chairman Brendan Carr said in an interview last week on Nexstar's NewsNation. "We need to let some of these broadcasters get to scale so they can hire the local reporters," Carr said. Asked about regulating Big Tech, he said the agency is "taking a look at a lot of different options," including reform of Section 230 of the Communications Decency Act. The FCC could also play a role in "bring[ing] some greater transparency" to Big Tech, Carr added.
The FCC's Note 11 rule, regulating TV network affiliations changing hands, might exceed the agency's Communications Act authority, a pair of 11th U.S. Circuit Court of Appeals judges said Friday as the court vacated a $518,283 fine against Gray Television for violating the rule. Neither the commission nor Gray, which was challenging the forfeiture order (see 2301040059), commented. The FCC charged that Gray violated rules against owning two top-four stations in a market when it bought the network affiliation of an Anchorage TV station from Denali Media.
Media ownership regulations should shift to being technology-neutral and recognizing that there is now an "integrated video-distribution market" that includes broadcast, cable and streaming, said International Center for Law & Economics Senior Scholar Eric Fruits in a blog post Wednesday. “Market power should be assessed based on a company’s share of this broader market, not just its dominance within a particular technological segment,” wrote Fruits, who is also an economics professor at Portland State University. “Instead of different rule books for different technologies, we need a unified framework based on competition principles.” This would involve sunsetting legacy rules tied to specific transmission mediums and basing any ownership rules on actual market share across all platforms, he said. “The focus should be on antitrust enforcement, rather than preemptive structural regulations.” If viewers “readily switch among cable, broadcast, and streaming based on content, rather than delivery method, regulations should treat these services as competitive alternatives,” Fruits wrote. Making that shift wouldn’t be simple but would allow “a media landscape in which competition would be waged on a level playing field and where consumers, not regulatory distinctions, determine which services succeed.”
The outlook is uncertain about whether President Donald Trump will attempt to fire Democratic members of the FCC, as the administration asserts its authority over “so-called independent” agencies (see 2502190073). It’s unclear whether the FCC and its Democratic members, Anna Gomez and Geoffrey Starks, are in Trump’s sights, but no one is taking anything for granted from the current administration, industry experts said. Gomez is emerging as the more outspoken critic of the regime under Chairman Brendan Carr, especially on media items (see 2502200023).
Broadcasters must be able to report the news without government retaliation and need the FCC to scrap ownership limits, said NAB President Curtis LeGeyt during a Media Institute speech Wednesday. “Our democracy relies on journalists’ ability to report the news without the risk of government retribution,” he said. “Efforts to limit the ability of broadcasters to report the facts hinders the public’s right to know and chills free speech.” The FCC should eliminate the national ownership cap, or it risks damaging emergency alerting and local news, LeGeyt added. “Without a necessary course correction in our ability to compete for local advertising, local newsrooms will continue to downsize, robbing the community of its voice," he said. “Eliminating these regulations will allow local stations to aggregate resources, invest in journalism and strengthen their service to communities.”
Broadcasters’ legal challenge of the FCC’s 2018 quadrennial review (QR) order is set for oral argument in the 8th U.S. Circuit Court of Appeals on March 19, said a filing in docket 24-1380 Friday. Petitioners Zimmer Radio, Nexstar, NAB, Beasley Media and Tri-State Communications have argued that the order violated the Communications Act because it didn’t roll back any broadcast ownership rules and ignored the increased competition faced by broadcasters. The FCC has previously argued in the case that the law doesn’t compel it to deregulate and that broadcasters haven’t shown that they face competition in local programming, but that could change under the agency’s new leadership. FCC Chairman Brendan Carr dissented from the QR order as a commissioner, calling its view of competition “ostrich-like.” Earlier this month, the agency kicked off oral argument over workforce diversity data collection by announcing it wouldn’t defend portions of the order (see 2502040061), which Carr also opposed as a commissioner.
Small and mid-sized cable operators are largely bullish about President-elect Donald Trump's incoming administration and his choice of FCC Commissioner Brendan Carr to head the agency, expecting aggressive deregulation, ACA Connects President Grant Spellmeyer said during an interview with Communications Daily. Spellmeyer discussed the industry group's 2025 priorities, growing questions surrounding BEAD, and what one does during the lame-duck weeks before inauguration and a new administration. The following transcript was edited for length and clarity.
The prospects for achieving broadcast ownership deregulation are “better than at any point in the recent past” under the incoming administration of President-elect Donald Trump, said Nexstar CEO Perry Sook in a Q&A during the UBS Global Communications Conference. Sook said Monday he expects a congressional effort will scrap the 39% broadcast ownership cap and implement internal FCC changes that will ease rules on broadcasters within the first six months of the new administration. Incoming FCC head and current Commissioner Brendan Carr “gets it,” Sook said. “We've been in contact with him, and will continue to be in close contact.” Sook said that Carr’s repeated statements on taking away broadcast licenses and holding broadcasters to a public interest standard are aimed at NBC, CBS and ABC. “I think there is some animus or frustration with some of the networks for some of their content decisions.” However, Sook downplayed the threat. “FCC chairmen can't really unilaterally revoke licenses,” he said. “Now you can use your pulpit to commence hearings ... and ... make people's lives more expensive and more difficult, but unilaterally removing licenses is not really within the cards.” Along with Carr, Sook said Nexstar discussed deregulation with Sen. Ted Cruz, R-Texas, and Speaker of the House Mike Johnson, R-La. Unlike previous pushes to change the national cap, the broadcast TV groups support completely removing it this time, Sook said. “The industry itself is united around the need and not divided as to what the right number is.” Carr could spur TV market consolidation simply by signaling that waivers allowing top-four duopolies would be more liberally granted, Sook said, adding it’s a move he could make without a majority at the commission. Sook is also looking to Carr to eliminate the simulcast requirement for the ATSC 3.0 transition and establish a date certain to end ATSC 1.0. “We are spending time working with both the legislative and the executive branch to try and affect these changes.”
FCC Commissioner Brendan Carr, the incoming chair, suggested Friday the agency could open a proceeding on the definition of the broadcaster public interest requirement and that he's open to broadcast ownership deregulation. In an interview with CNBC Friday, Carr said broadcasters “have to operate in the public interest, and ... it's probably appropriate for the FCC to take a fresh look at what that requirement looks like.” He added, “There is something different about broadcasters and say, podcasters, where you have to operate in a public interest,” Carr said. “So right now, all I'm saying is maybe we should start a rulemaking to take a look at what that means.” Carr also said he wants a fresh look at “a whole set of ownership issues” and ensuring “we get investment in local news.” He reiterated that revocation of broadcaster licenses for not meeting the public interest is “on the table,” though he also said that the law prevents the FCC from engaging in censorship. “I don't want to be the speech police.”