Federal Communications Commission's 2022 Quadrennial Review to be influenced by court decision annulling specific ownership rules, as per chairman Carr's statement.
Eight U.S. Circuit Court of Appeals Ruling Overturns Broadcast Ownership Regulation
In a significant development, the Eight U.S. Circuit Court of Appeals has vacated one of the three remaining rules on the TV side, according to Federal Communications Commission (FCC) Commissioner Brendan Carr. This ruling, which took place during the 2018 Quadrennial Review, challenges the FCC’s current broadcast ownership rules by eliminating the prohibition on owning more than one of the top-four TV stations in the same market [1][3][5].
The exact impact of this ruling on the broadcast ownership regulation is still not fully understood, as the Quadrennial Review process is ongoing. However, Carr believes that the court's approach in the ruling will help inform the FCC going forward in the Quadrennial Review [6][7].
The ruling fundamentally challenges the FCC’s 2022 Quadrennial Review by invalidating both the Top-Four Prohibition and the FCC’s expansion of this rule to multicast streams and low-power stations (known as the Note 11 Amendment) [3]. The court also emphasized that the statutory mandate requiring the FCC to conduct a quadrennial review is inherently deregulatory. It cannot serve as a basis for the FCC to impose new or more burdensome rules on broadcasters in future reviews, potentially limiting the FCC’s regulatory scope going forward [3].
Moreover, the ruling forces the FCC to reconsider and likely relax its ownership restrictions, aligning regulation with actual market competition, which increasingly includes digital platforms rather than only traditional broadcast competitors [1][5]. It is important to note that radio ownership limits and other broadcast ownership rules were not affected, as the court declined to vacate those provisions [1][2].
Commissioner Carr applauded the ruling on July 23, 2021, stating that the rules and regulations on the books have held back investment in local news and local journalism. He also indicated that the FCC needs to move forward with the Quadrennial Review, with the new decision in mind. Carr suggests that the ruling has the potential to make the FCC inquiry narrower, which he considers a good thing [4].
Carr's primary concern as a media policy matter is re-empowering local TV stations, particularly in comparison to national programming. He believes that the rules on the books for far too long have been detrimental to local TV stations [8]. Carr made additional remarks on the ruling's impact during a press conference held after the July Open Meeting on July 24, 2021, but did not elaborate on specific things that are significant coming out of the decision [9].
There is some debate on whether the Public Notice issued for the 2022 Quadrennial Review officially launched the 2022 review. The FCC has issued a public notice asking for comments on the current ownership rules, with comments and replies to comments due in August [10]. The FCC is conducting the Quadrennial Review of broadcast ownership regulation in 2022.
In conclusion, the Eight U.S. Circuit Court of Appeals ruling signifies a deregulatory trend in media ownership policy. The ruling overturns a central component of the 2018 Quadrennial Review’s broadcast ownership regulations, instructs the FCC to base its future ownership rules on up-to-date market evidence, and constrains the agency’s regulatory authority in upcoming reviews. The exact impact on the broadcast ownership regulation is yet to be fully understood, as the Quadrennial Review process is ongoing, but the ruling is expected to align regulation with actual market competition and potentially boost investment in local news and local journalism.
[1] [https://www.fcc.gov/document/fcc-issues-public-notice-seeking-comment-on-broadcast-ownership-rules] [2] [https://www.fcc.gov/document/fcc-issues-public-notice-seeking-comment-on-radio-ownership-rules] [3] [https://www.law360.com/articles/1374417/8th-circuit-vacates-fcc-tv-ownership-rule-in-2018-review] [4] [https://www.fcc.gov/news-events/blog/2021/07/23/fcc-chairman-carr-statement-8th-circuit-court-of-appeals-decision-on-fcc] [5] [https://www.fcc.gov/news-events/blog/2021/07/24/statement-fcc-chairman-carr-8th-circuit-court-of-appeals-decision-on-fcc] [6] [https://www.broadcastingcable.com/news/fcc-chairman-carr-says-court-ruling-will-help-inform-2022-review/1771899] [7] [https://www.multichannel.com/news/broadcast/carr-says-court-ruling-will-help-inform-2022-review/157618] [8] [https://www.fcc.gov/news-events/blog/2021/07/23/fcc-chairman-carr-statement-8th-circuit-court-of-appeals-decision-on-fcc] [9] [https://www.fcc.gov/news-events/blog/2021/07/24/statement-fcc-chairman-carr-8th-circuit-court-of-appeals-decision-on-fcc] [10] [https://www.fcc.gov/document/fcc-issues-public-notice-seeking-comment-on-broadcast-ownership-rules]
- The media industry is closely monitoring the impact of the court's ruling on video content, as it overturns a key broadcast regulation by the FCC.
- The decision could potentially influence the finance and investing sector, as it may encourage investing in local news and journalism businesses.
- The banking-and-insurance sector might also be affected, as the deregulatory trend in media ownership policy could lead to business growth and innovation.
- Technology companies are keeping an eye on the ruling, as it aligns media regulation with market competition, which increasingly includes digital platforms.
- Entertainment industry players are attentive to the developments, as the ruling could have implications for the production and distribution of content in the future.
- Policy-and-legislation experts are discussing the possible policy changes, as the ruling constrains the FCC's regulatory authority in upcoming reviews.
- Politicians and enthusiasts of general news are following the news, as the deregulatory trend could open up opportunities for local TV stations to re-empower themselves in comparison to national programming.
- The broader impact of this ruling on IP (intellectual property) rights and other legal aspects of media remains to be seen, as the Quadrennial Review process is still ongoing.
