Ownership Rules Debated In Appeals Court

On Wednesday,a three-judge panel from the U.S. Court of Appeals for the Eighth Circuit in St. Paul, Minnesota, heard a legal challenge brought by broadcasters against the FCC most recent decision on radio ownership limits. 

This hearing is part of the ongoing debate over the FCC's media ownership rules, specifically the Local Radio Ownership Rule, which caps the number of radio stations a single entity can own in a given market—up to eight stations, with no more than five on one band (AM or FM) in the largest markets.

The challenge stems from the FCC's 2023 quadrennial review (MB Docket No. 18-349), finalized under former Chair Jessica Rosenworcel in December 2023 with a 3-2 vote. 

The review retained the existing Local Radio Ownership Rule with only minor adjustments, rejecting calls from some broadcasters, including the National Association of Broadcasters (NAB), to relax these limits further. The NAB and companies like Connoisseur Media and Townsquare Media argued that loosening the caps, particularly on FM stations, would allow broadcasters to better compete with digital platforms like streaming services, which face no such ownership restrictions. They contend that the current rules are outdated in a media landscape dominated by unregulated online competitors.

\Conversely, the FCC defended its decision, asserting that AM/FM radio remains a distinct market serving local communities with unique content—such as local news, sports, and personalities—that digital platforms do not replicate. The agency argued that these rules remain necessary to promote competition, localism, and diversity in the public interest. However, dissenters within the FCC, including then-Commissioner Brendan Carr (now Chair under the Trump administration), criticized the decision as "backward-looking," suggesting it hampers local media’s ability to adapt to modern challenges.

The broadcasters’ appeal to the Eighth Circuit seeks to overturn or modify the FCC’s 2023 order, claiming it fails to adequately address the competitive realities of today’s media environment. \

The outcome rests with the three-judge panel, whose decision could either uphold the FCC’s stance or force a significant revision of radio ownership regulations. This case reflects a broader, recurring tension in FCC policy, as previous quadrennial reviews have also faced legal challenges—most notably in the Third Circuit—over similar issues of competition and diversity. With the current date being March 20, 2025, the panel’s ruling, expected in the coming months, will shape the future of radio ownership limits under the new Trump-appointed FCC leadership, potentially aligning with Carr’s deregulatory leanings.