FCC Rules Battle Promises to Rage On

A recent Congressional setback to new and looser media ownership rules by the FCC means that uncertainty and contention over who may own what is almost sure to drag on into the fall.

By a lopsided 400-21 margin, the House of Representatives voted July 22 to roll back new FCC regulations allowing broadcast companies to own TV stations serving up to 45 percent of U.S. viewers. The previous limit was 35 percent, and most major media conglomerates had lobbied for the higher ceiling.

Even though Republicans control the White House, Congress and the FCC, many in the GOP — for various reasons -- have challenged the ruling and their party’s stand in favor of it. The fight now moves to the Senate, where a committee has already approved a similar measure by a broad bipartisan majority. Lawmakers speculated that the arguments wouldn’t be resolved at least until this fall, if then. President Bush has threatened to veto a re-tightening of the regulations.

The TV Academy has not taken an official position on the issue, partly because nonprofit organizations aren’t permitted to lobby. With personal and professional interests at stake, however, most Academy members were following the debate closely.

"The Academy strongly supports a diversity of viewpoints on television, but our members also have widely diverse opinions about how to achieve that goal," said Academy Chairman Bryce Zabel. "Nonprofit rules prevent us from lobbying, but we will do our best to see that our members are informed on the issue and ready to act on it as they see fit.""The House has now repudiated the FCC's attempted giveaway of the public airways to national media giants based in New York and L.A.," Democratic Rep. David Obey of Wisconsin, who authored the bill's network ownership provision, told the New York Times. "I hope the administration is listening and will fix its flawed policy, so citizens can get accurate, free-flowing information -- the lifeblood of democracy."

Many representatives were apparently influenced by resistance to the new rules from both the general public and lobbying groups on both sides of the political spectrum, from the National Rifle Association to the Consumers Union.

FCC Chairman Michael Powell issued a written statement defending the commission's decision. The FCC voted June 2 to ease the ownership caps by a 3-2 party-line vote .

"We are confident in our decision," Powell said. "We created enforceable rules that reflect the realities of today's media marketplace. The rules will benefit Americans by protecting localism, competition, and diversity."

FCC policy supporters claim that ownership limits ignore the competition television networks face from cable and satellite TV as well as the Internet. Among companies favoring a relaxation of the ownership rules were Viacom Inc., which owns the CBS and UPN networks, and News Corp., owner of Fox. Both companies already exceed the 35 percent limit.

Opponents of the FCC decision maintain that giving nearly half of the television market to giant corporations would decrease the diversity of voices and viewpoints on television, particularly in local markets.