Court Puts FCC Rules On Hold

A federal appeals court in Philadelphia has put the FCC's new media ownership rules on hold subject to judicial review. The stay granted by the three-judge Third U.S. Circuit Court of Appeals prevents the new rules from taking effect as scheduled on Sept. 4.

Some experts had predicted a flurry of mergers and acquisitions as soon as the new rules took effect.
Critics have argued that the FCC rules would concentrate too much power in the hands of giant media companies, while executives for the bigger conglomerates have contended that a growing diversity of delivery options -- not only on television but on the Internet, on DVDs and other media -- made the old rules obsolete.

"Given the magnitude of this matter, and the public's interest in reaching the proper resolution, a stay is warranted pending thorough and efficient judicial review," the order said. An FCC spokesman said the agency was "disappointed" and would defend its decision.

The Republican-dominated agency adopted the new rules in June despite objections from both Republican and Democratic lawmakers as well as consumer advocates. Longstanding regulations were changed to allow a single media company to reach 45 percent of the national television audience through local TV station ownership -- up from a current 35 percent. Companies also would be able to own both newspapers and broadcasters in the same markets.

The appeals court was expected to make a ruling later on whether to move the case from Philadelphia to a federal court in Washington.