FCC Opens New Review Of Ownership Rules

The Federal Communications Commission on Wednesday voted to open a new review of media ownership rules and seek comments on whether the government should end a prohibition on mergers among the four largest broadcast networks.

According to The NYPost, the FCC said it could reverse the rule that bars a merger among the “Big Four” networks: NBC, owned by Comcast Corp., Walt Disney Co.’s ABC, CBS Corp.’s CBS or Fox, owned by Twenty-First Century Fox.

Ajit Pai

The FCC asked if the rule “remains necessary to promote competition, localism, or viewpoint diversity.”

FCC Chairman Ajit Pai said the commission is “teeing up a number of questions” and keeping an open mind on whether the rules still make sense.

The FCC noted that a version of the rule barring dual ownership of networks has existed since the 1940s and asks if US antitrust laws or other policies would “serve as a sufficient backstop to prevent undue consolidation between or among the Big Four networks.”

The FCC also wants comments on a rule that bars one company from owning two TV stations in the same market except under certain circumstances. The FCC asks if those rules continue “to serve the public interest and remains necessary.”

The FCC will also consider if existing rules that limit the number of local radio stations in a single market should be rescinded.

The FCC noted in a report that broadcast networks face significant competition in content creation and cited the billions of dollars that Netflix, Amazon and YouTube are spending on original content.

Democratic FCC Commissioner Jessica Rosenworcel raised concerns that “too much consolidation can reduce the number of voices, jobs, and the newsgathering that results.”

In November 2017, the FCC voted 3-2 to eliminate the 42-year-old ban on cross-ownership of a newspaper and TV station in a major market. It also voted to make it easier for media companies to buy additional local TV stations in the same market.

NAB Executive VP/Communications Dennis Wharton said, "NAB looks forward to participating in the FCC's congressionally-mandated quadrennial review of broadcast media ownership rules. We are not seeking wholesale elimination of these regulations, but rather a modernization that reflects today's fiercely competitive marketplace. We trust the Commission will update these rules with an understanding that free and local broadcasting now competes head-to-head with powerful Internet, pay TV and audio companies that didn't exist when many broadcast ownership rules were first written."