Chairman Brendan Carr has floated a proposal for an auction system allowing broadcasters to pay to opt out of public interest obligations, a response partly spurred by the recent controversy involving Jimmy Kimmel.
During a Friday, News Conference Carr expressed frustration with the FCC’s decades-long retreat from enforcing public interest standards for local broadcasters. “The FCC has walked away from enforcing the public interest standard, and I don’t think that’s been a good thing,” he said.
He dismissed complaints about how these obligations are enforced, suggesting broadcasters who dislike them could relinquish their licenses and pivot to unregulated platforms like streaming, cable, or podcasting.
“Maybe there’s a future where broadcasters can bid to get out from under the public interest obligation,” Carr said, contrasting these with traditional licenses that mandate public interest compliance.
Such a shift would mark a dramatic departure from the regulatory framework established by the 1969 Red Lion ruling, which upheld public interest obligations due to spectrum scarcity. The auction model could appeal to broadcasters wary of FCC oversight on political coverage, news distortion, or indecency rules, leveling the playing field with unregulated competitors like SiriusXM, streaming services, and podcasts while generating revenue for the FCC.
However, implementing this system would likely require congressional approval, as federal law ties broadcast licenses to public interest duties.