The National Association of Broadcasters (NAB) has submitted its initial brief challenging the Federal Communications Commission’s (FCC) local radio and television ownership restrictions.
This challenge is directed at an FCC Order from December 2023, which maintained most existing ownership rules and tightened some as part of the FCC’s quadrennial review of ownership regulations for 2018. The FCC is mandated to review and justify these rules every four years, with the 2022 review still in progress.
Overview of the Challenge
The brief, filed by the NAB, Zimmer Radio, Beasley Media Group, and Nexstar Media Group, contests the FCC’s broadcast ownership restrictions, arguing that the rules have become overly burdensome and outdated. The petitioners assert that the review process, intended by Congress to be deregulatory, has instead increased regulatory burdens on the industry.
Arguments Against the Current Rules
The brief criticizes the Local Television and Radio Rules for retaining and tightening long-standing restrictions on the ownership of television and radio stations in specific geographic markets. The petitioners argue that these rules are based on the outdated belief that broadcasters can exert disproportionate influence by shaping news and entertainment. However, with the rise of the internet, smartphones, social media, and streaming platforms, the petitioners claim that broadcasters now face intense competition and struggle to maintain their audience and advertising revenue.
Specifics of the FCC Order
In the December Order, the FCC retained the existing ownership caps and clarified its stance on situations where a top four TV station acquires the programming of another top four station in a market, moving it to a Low Power Television (LPTV) or multicast channel. The FCC decided to prohibit the transfer of such programming to an LPTV or multicast station.
Petitioners’ Request to the Court
The petitioners have requested the Court to vacate the local TV and radio ownership rules, including the newly tightened rules for the top four stations. They also seek the elimination of the AM/FM subcaps under the Local Radio Rule.
Statement from NAB President and CEO
NAB President and CEO Curtis LeGeyt emphasized the need for the FCC to update its broadcast ownership rules, describing them as relics from a bygone era. He stated that the NAB’s brief clearly demonstrates to the U.S. Court of Appeals for the Eighth Circuit that the FCC has failed to justify the continued necessity of these rules in light of the significant competition broadcasters face in the modern media landscape.
