FCC Files a Defense of Its Media Rules

The Federal Communications Commission told an appeals court Tuesday that it had the legal right to rewrite media ownership rules.

The FCC’s 126-page filing was its formal response to a lawsuit filed last summer against the commission’s new rules. The U.S. 3rd Circuit Court of Appeals in Philadelphia blocked the rules Sept. 3 and said it would hear arguments on their legality.

The commission has “adjusted its broadcast ownership rules in recent years to take account of developments in the media marketplace, including the significant increase in the number of broadcast outlets and the advent of competing video programming providers,” the FCC brief said.

“The Supreme Court has emphasized time and again that the commission’s power to adopt and revise broadcast ownership rules in the public interest is both wide-ranging and flexible.”

In June, the Republican-controlled FCC voted 3 to 2 along party lines to allow a single company to own newspapers and broadcast outlets in the same city and to allow a single firm to own TV stations reaching 45% of the nation’s viewers.

Opponents challenged the rules in court, fearing they would lead to greater media consolidation.

Both houses of Congress had voted to roll back one of the FCC rules and limit a company’s TV-station ownership to 35% of the nation’s viewers.

Bowing to a veto threat by President Bush, however, lawmakers subsequently agreed to set the cap at 39%, a level that would allow Viacom Inc., owner of CBS and UPN, and News Corp., owner of Fox, both of which exceeded the 35% limit because of mergers, to avoid selling any TV stations.

Since Jan. 1, Bush has raised $158,450 from the broadcast industry, more than any other candidate for national office.

The 39% cap is part of a $373-billion year-end spending bill that passed the House on Monday and awaits Senate action.

Lawmakers opposing the FCC action said they would try to overturn the other provisions when Congress reconvenes next year.