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Published: April 2008

Reconsider FCC media ownership rule change

Consumer Action joined in a letter to the Federal Communications Commission asking that the recently revised newspaper-broadcast cross-ownership rule be reconsidered. In December the FCC overturned a 32-year-old ban on cross ownership to allow broadcasters in the nation's 20 largest media markets to also own a newspaper.

Common Cause, the Benton Foundation, Consumers Action, Massachusetts Consumers’ Coalition, NYC Wireless, James J. Elekes, and National Hispanic Media Coalition ask the FCC to reconsider aspects of the 2008 Order relating to the revised newspaper-broadcast cross-ownership rule (“NBCO rule”), the grandfathering of existing unlawful combinations, and the decision to keep the current local television and radio limits at their present levels. 

First, the revised NBCO rule should be modified to provide that waivers will be granted only where the proposed combination squarely falls within the presumption that the waiver is in the public interest (and is not rebutted), or meets either the failing media test or an enhanced version of the local news test.  The FCC should not allow applicants to rebut the presumption that any other waivers are not in the public interest using the four factor test because it is overly vague and provides no means to ensure that applicants will follow through on their promises.

Second, the Commission should require that applicants provide enhanced public notice of proposed mergers and waiver requests, so that the public has ample opportunity to participate in these decisions. In addition, it should require broadcasters who acquire a co-located daily newspaper to apply for a waiver within one month of the acquisition. This will prevent broadcasters from abusing a loophole, whereby they can acquire a newspaper early on in their license terms and not comply with the NBCO rule for up to eight years.

Third, the Commission should reverse its decision to grandfather Media General’s newspaper-broadcast cross-ownerships in Myrtle Beach-Florence, South Carolina; Columbus, Georgia; Panama City, Florida; and Tri-Cities, Tennessee/Virginia, and Gannett’s Phoenix combination.  Each of these combinations was created in 2000 and should have been divested before filing their applications for renewal under the then-applicable NBCO rule.  Instead, General and Gannett filed for waivers along with their renewals, four of which were opposed by local residents.  However, the Commission never acted on the renewal applications.  In the 2008 Order, even though each of these combinations would be presumed to be contrary to the public interest under the newly-adopted criteria, the Commission did not require these applicants to amend their applications for consideration under the new test, as it did with other combinations.  Instead, without any public notice, the Commission arbitrarily granted them outright waivers.

Fourth, instead of attempting to justify retention of the 1999 duopoly rule, the Commission should prohibit common ownership of more than one overlapping television station in a local television market.  The FCC failed to consider that the transition to digital television, which will be completed in less than one year, allows television stations to multicast.  This ability to offer multiple program streams, which nearly 600 televisions are already doing, provides economic and programming benefits similar to those that flow from holding multiple licenses.  Thus, the broadcasters’ argument that they need multiple licenses to improve service to their communities, even if true in the past, is no longer true today. 

Finally, the Commission should lower the local radio ownership limits.  Despite abundant evidence that radio market concentration has harmed competition and diversity, the 2008  Order does not contemplate lowering the limits.  Nor does it consider the positive effects that lowering the limits would have on localism and minority and female ownership.  The Commission should also reverse its decision to grandfather radio station combinations that exceed ownership limits.

Lead Organization

Georgetown University Law Center

Other Organizations

Counsel for Common Cause | Benton Foundation | Massachusetts Consumers’ Coalition | NYC Wireless | James J. Elekes | National Hispanic Media Coalition

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