Appeals Court Tosses FCC's Media Ownership Rules

from the does-it-really-matter? dept

You may recall that, four years ago, the Kevin Martin FCC pushed through (despite massive complaints from people) some incredibly meek media ownership rule relaxations. As you may know, there were existing rules that said the same company couldn't own a newspaper along with a local TV station. The reasoning behind this was the fear that a single operator of both the paper news and broadcast news would dominate the local news dissemination business and could influence the public too much. Of course, in the age of the internet, that seems really silly. And the FCC's rule change was incredibly minor. As we wrote at the time:

In the top 20 media markets, newspapers can merge with a single radio or TV station -- but not if that TV station is one of the top 4 stations in that market. In other words, newspapers who are struggling to get beyond just being newspapers can finally expand into other media areas. I can't understand why people are freaked out about this. At best, a newspaper can now own a tiny radio or TV station. The fear of only one point of view getting through is totally laughable for a variety of reasons. First, there are more sources of media than ever before in history -- by a long shot. To think that a single TV station or newspaper can dominate the conversation is laughable. Second, since it can't involve a top 4 TV station, it's hard to believe that this new entity will have all that much dominance in the market.

But people still went crazy about this and lawsuits were filed. Over in the Third Circuit, a court has now dumped the new rules on what appears to basically be a technicality. Apparently, the FCC ""failed to meet the notice and comment requirements of the Administrative Procedure Act" to make this change. The standard procedure requires 90 days of response time, but Kevin Martin only gave people 28 days to comment.

Again, this whole thing seems pretty silly. Even if people still rely on broadcast news, this simply isn't going to have that big of an impact.

Filed Under: broadcasters, cross ownership, fcc, limits, media ownership, newspapers

Court Sorta Kinda Allows Marginally More Media Cross Ownership

from the yawn dept

For decades, the US has had certain "media cross-ownership" limits to prevent, for example, a single company from owning both a local broadcast network and a newspaper. These rules came about back when those two were basically the only source one could go to for local news. But, of course, that's not true any more (at all). Instead, you've got local media that is struggling, and perhaps it does make sense for them to not be forced into only playing in a single medium. So, for years the FCC has tried to loosen media ownership rules, leading to complaints from people who still don't seem to recognize that the internet is a pretty big competitor these days with the old media companies. In 2007, the FCC came up with a compromise that very marginally loosened media ownership rules: basically, in just the top 20 media markets, a newspaper could merge with a single radio or TV station but not if that TV station was one of the top 4 in the market. In other words, there was no way this minor loosening of the rules was going to lead to some feared situation of one company dominating the media landscape.

But, still, lots of people protested that suddenly all our news was going to come from Rupert Murdoch, and politicians looked to invalidate the rule while lawsuits were filed. A judge eventually banned putting the rules into effect, but an appeals court has now temporarily lifted the ban. While some are still complaining about this, the impact is likely to be negligible at best. As Editor & Publisher explains:

It's safe to say that Tuesday's Third Circuit action -- which could prove only a temporary lifting of the ban -- won't set off any buying binge among newspapers.

For one thing, nobody is going to lend newspapers money to buy media these days. That lesson's been learned until the next bubble comes around. And even if a newspaper had the jack to swing a deal, there's little point in spending it on the fourth-place -- or worse -- broadcast outlet in town.

Filed Under: broadcasters, cross ownership, fcc, limits, media ownership, newspapers