• by Erik Sass  @eriksass1, May 8, 2008

Kevin Martin, the embattled chairman of the Federal Communications Commission, got a rare statement of support Tuesday. The National Association of Broadcasters sent the FCC a 32-page letter arguing that the commission should not back down on its decision to allow cross-ownership of broadcast and newspaper properties.

The letter from the NAB, a major lobbying organization representing radio and TV broadcasters, puts it in conflict with members of Congress who want to block the revision.

"This order very modestly reformed the complete ban on newspaper/broadcast cross-ownership and made no changes to the television duopoly and local radio-ownership rules," wrote the NAB, adding: "There is no reason for the commission to retreat..."

The FCC revision, enacted Dec. 18 as part of a quadrennial review of media-ownership rules, would allow a single entity to own both a newspaper and a radio or TV broadcast outlet in the top 20 media markets. This had previously been forbidden by a rule, enacted in 1975, that was intended to prevent undue concentration of media ownership.

Since then, however, a number of companies have skirted the ban and acquired multiple newspaper and broadcast properties in the same market, obtaining waivers because one of the properties was considered a distressed or failing business. For example, Rupert Murdoch was allowed to acquire the New York Post, although he already had TV stations in the New York market.

Separately, the Tribune Co. owned multiple newspaper and broadcast properties before the ban went into effect and received waivers that were "grandfathered in." (Recently, the company had to obtain new, temporary waivers during its acquisition by real-estate mogul Sam Zell).

After the FCC voted to loosen the restrictions on Dec. 18, Martin came under fire from members of Congress and consumer advocates who said he did not leave enough time for review of the proposed changes. The 3-2 vote pitted the commission's three Republicans against its two Democrats, who complained that Martin was riding roughshod over their objections.

Subsequently, members of Congress from both parties have criticized Martin for hurrying the vote and ignoring their questions and demands concerning the change.

Two weeks ago, the Senate Commerce Committee adopted a resolution that would block the rule change. With bipartisan support on the committee, it's considered likely to pass a full Senate vote.

The timing of the decision is crucial for Murdoch, who is trying to buy Newsday from Tribune Co. The deal could be blocked by the FCC's new rules, as it only allows cross-ownership of one newspaper and broadcast property per market. Martin has said that under the new rule regime, waivers for cross-ownership of multiple properties would be granted far less often.