Senate Committee Wants to Reverse FCC Cross-Ownership Rule

logoThe Senate Commerce Committee voted last week to block a controversial rule change by the Federal Communications Commission that would make it easier to own broadcast stations and newspapers in the nation's top markets. The resolution, sponsored by Sen. Byron Dorgan (D-N.D.), comes after months of criticism directed at FCC Chairman Kevin Martin. Opponents say Martin did not leave enough time for public and congressional review of the proposed rule changes.

To take effect, the resolution blocking the rule changes must now be passed by a full vote of the Senate. This is likely because the resolution already has bipartisan approval, including the Commerce Committee's senior-ranking Republican, Sen. Ted Stevens of Alaska.

Over the last year, the proposed rule change has encountered united opposition from both Democrats and Republicans, who say they are concerned about excessive concentration of media ownership in the hands of a few companies. The planned revision would have loosened FCC rules dating to 1965 that prevent a single company from owning both a TV or radio station and newspaper in the same market in the top 20 media markets.

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The loosening of the restrictions on cross-ownership of media properties was initially approved by a controversial 3-to-2, party-line vote in the FCC held on Dec. 18. Martin set this date as the deadline for an FCC vote, although Senators and Representatives from both parties urged him to delay the vote until the New Year to allow more time for public discussion and comments.

Martin responded that he was hurrying the vote because he didn't want the rule change to become a political football in an election year.

Martin, a Republican, was supported by the FCC's two other Republican members: Robert M. McDowell and Deborah Taylor Tate. The Commission's two Democrats, Jonathan S. Adelstein and Michael J. Copps, both voted against the rule change. Copps and Adelstein also complained to Congress and journalists that Martin was ramming the vote through over their protests and requests to delay.

In recent years, companies like News Corp. and Tribune have been allowed to own broadcast and newspaper properties in violation of the 1965 rule after receiving waivers from the FCC. In the case of News Corp., Rupert Murdoch received a waiver allowing him to buy the New York Post because it was considered a "failing" newspaper at the time.

Now Murdoch--who also owns two television stations, WNYW and WWOR--is seeking to renew waivers allowing him to own both these stations, the New York Post, and the newly acquired Wall Street Journal. He also recently entered into an agreement to buy Newsday from Tribune Co.--a deal that observers say could be blocked by the FCC's new rules, ironically enough, as they only allow cross-ownership of one newspaper and broadcast property per market. Newsday would be Murdoch's fifth.

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