FCC chief defends rule proposal

The nation’s top communications regulator Wednesday denied that his proposed media ownership rule has a major loophole that would allow newspapers and broadcast stations to merge in any size market.

Federal Communications Commission Chairman Kevin J. Martin said he was willing to work with the two Democrats on the commission to change the wording of his proposal to make sure that any transaction resulting in cross-owned properties would face a “high hurdle” in the approval process.

Martin and his fellow commissioners appeared Wednesday before the House subcommittee on telecommunications and the Internet in a hearing to field questions about proposed media ownership rule changes.

On Nov. 13 Martin released the text of a proposed rule that he said would allow a radio or television broadcaster to own a newspaper, but only in the nation’s 20 largest markets. But Democratic commissioners Jonathan S. Adelstein and Michael J. Copps say the rule creates a broader exception than what is currently on the books.

Martin’s proposed rule states that it is “inconsistent with the public interest” for one entity to own a newspaper and radio or television station in a sub-top-20 market. But the rule gives the commission authority to allow such a transaction based on certain factors. They include the effect of a proposed merger on local news and independent news judgment, the level of ownership concentration in the market and whether the newspaper is “in financial distress.” The current rule requires only that the property be in danger of failing.

Copps said the four factors in the proposed rule were “about as tough as a bowl of Jello.”

The subcommittee’s chairman, Rep. Edward J. Markey (D-Mass.), asked Martin whether companies that wanted cross-owned properties in smaller markets would face “a high hurdle” during the approval process. He also asked whether Martin would be willing to work with the Democrats to change the wording of his proposal.

Martin said he would “be willing to work with them on finding language that makes it clear that this is a high hurdle.”

The FCC plans to vote on the cross-ownership rule Dec. 18.