FCC Supports Foreign Ownership Investments

The FCC earlier this month released a draft Notice of Proposed Rulemaking (NPRM) to clarify and streamline foreign ownership regulations for broadcast, common carrier, and aeronautical radio licensees under Section 310(b) of the Communications Act.

For the past ten years, the FCC has managed foreign investment complexities without formalizing its practices, leading to unclear requirements, inconsistent outcomes, and higher compliance costs. The Notice of Proposed Rulemaking (FCC 25-26), unanimously adopted Monday, by Chairman Brendan Carr and Commissioners Geoffrey Starks, Nathan Simington, and Anna Gomez, proposes and seeks comment on measures to address these issues, including:

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  Codifying the designation of a controlling U.S. parent
• Clarifying advance approval for specific voting interests
• Requiring disclosure of trusts and trustees
• Extending foreign ownership and remedial processes to privately held companies
• Clarifying U.S. residency rules
• Formalizing requirements for remedial petitions

The FCC supports foreign investment to drive innovation, jobs, and growth but stresses the need to mitigate risks from foreign adversary countries. Clearer rules are vital to balance these priorities.

The FCC invites public comment on reducing regulatory burdens, amendment filings, processing broadcast applications during remedial reviews, and considerations for noncommercial educational and low-power FM stations. For more details, review the FCC’s NPRM at https://www.fcc.gov or submit comments at https://www.fcc.gov/ecfs.