http://www.firstamendmentcenter.org/news.aspx?id=19417
QUOTE
FCC chief willing to negotiate on media-ownership rule
By The Associated Press
12.07.07
WASHINGTON — The nation's top communications regulator has 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 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 before the House Subcommittee on Telecommunications and the Internet Dec. 5 in a lengthy hearing to field questions about proposed changes in media-ownership rules.
The chairman released the text of a proposed rule on Nov. 13 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 Adelstein and Michael 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 under certain circumstances. These include the impact 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."
Subcommittee Chairman Rep. Edward Markey, D-Mass., asked Martin whether companies that want cross-owned properties in smaller markets would face "a high hurdle" or a "speed bump" during the approval process. He also asked whether Martin would be willing to work with the Democrats to change the wording.
Martin said he would "absolutely be willing to work with them on finding language that makes it clear that this is a high hurdle."
The commission is scheduled to vote on the cross-ownership rule Dec. 18. Democrats on the commission and on the House panel have accused Martin of not allowing enough time for public review of his proposal.
On Dec. 4, the Senate Commerce Committee approved a bill that would delay the adoption of Martin's proposal for at least six months until the agency completes studies on localism and minority ownership.
Martin faced questions about his management, including recent unexplained delays in commission meetings, accusations that he has "cherry picked" data to support his position on an issue, his reputed failure to keep fellow commissioners apprised of upcoming proposals and an alleged lack of transparency in the way the FCC operates.
On Dec. 3, House Energy and Commerce Committee Chairman John Dingell, D-Mich., ordered an investigation of the agency by the subcommittee on oversight and investigations alleging a lack of openness. Dingell later said the FCC "appears to be broken."
In response to a critical report from the Government Accountability Office, the agency said Dec. 4 that it would begin publishing a list of items under consideration for a vote by the commission on its Web site in an effort "intended to make the FCC's rulemaking process as fair and transparent as possible."
The commissioners are scheduled to make another trip to Capitol Hill before the ownership vote. On Dec. 13, they will testify before the Senate Commerce, Science and Transportation Committee.
The two Democrats are clearly opposed to Martin's ownership proposal.
Republican commissioners Robert McDowell and Deborah Taylor Tate, however, appeared to be leaning toward a vote in favor. They back Martin's position that enough time has been allowed for public input on ownership rules and that there has been a significant expansion of media outlets in past years.
In related news, Tribune Co. has gone to court as expected to appeal the FCC action that cleared the way for its $8.2 billion buyout but denied its request for indefinite waivers of rules against owning newspaper and broadcast properties in the same market.
The media conglomerate disclosed yesterday that it had filed the appeal Dec. 3 with the U.S. Circuit Court of Appeals for the District of Columbia. The legal action had been expected since the FCC's Nov. 30 ruling.
The FCC's rejection of Tribune's request for indefinite waivers of cross-ownership rules affects numerous markets where the company owns both newspapers and broadcast stations. By challenging the order, the company gets an automatic extension of current waivers lasting for at least two years and up to six months after the legal case ends.
Tribune's holdings include the Chicago Tribune, Los Angeles Times and seven other daily newspapers along with 23 TV stations and the Chicago Cubs baseball team.
By The Associated Press
12.07.07
WASHINGTON — The nation's top communications regulator has 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 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 before the House Subcommittee on Telecommunications and the Internet Dec. 5 in a lengthy hearing to field questions about proposed changes in media-ownership rules.
The chairman released the text of a proposed rule on Nov. 13 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 Adelstein and Michael 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 under certain circumstances. These include the impact 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."
Subcommittee Chairman Rep. Edward Markey, D-Mass., asked Martin whether companies that want cross-owned properties in smaller markets would face "a high hurdle" or a "speed bump" during the approval process. He also asked whether Martin would be willing to work with the Democrats to change the wording.
Martin said he would "absolutely be willing to work with them on finding language that makes it clear that this is a high hurdle."
The commission is scheduled to vote on the cross-ownership rule Dec. 18. Democrats on the commission and on the House panel have accused Martin of not allowing enough time for public review of his proposal.
On Dec. 4, the Senate Commerce Committee approved a bill that would delay the adoption of Martin's proposal for at least six months until the agency completes studies on localism and minority ownership.
Martin faced questions about his management, including recent unexplained delays in commission meetings, accusations that he has "cherry picked" data to support his position on an issue, his reputed failure to keep fellow commissioners apprised of upcoming proposals and an alleged lack of transparency in the way the FCC operates.
On Dec. 3, House Energy and Commerce Committee Chairman John Dingell, D-Mich., ordered an investigation of the agency by the subcommittee on oversight and investigations alleging a lack of openness. Dingell later said the FCC "appears to be broken."
In response to a critical report from the Government Accountability Office, the agency said Dec. 4 that it would begin publishing a list of items under consideration for a vote by the commission on its Web site in an effort "intended to make the FCC's rulemaking process as fair and transparent as possible."
The commissioners are scheduled to make another trip to Capitol Hill before the ownership vote. On Dec. 13, they will testify before the Senate Commerce, Science and Transportation Committee.
The two Democrats are clearly opposed to Martin's ownership proposal.
Republican commissioners Robert McDowell and Deborah Taylor Tate, however, appeared to be leaning toward a vote in favor. They back Martin's position that enough time has been allowed for public input on ownership rules and that there has been a significant expansion of media outlets in past years.
In related news, Tribune Co. has gone to court as expected to appeal the FCC action that cleared the way for its $8.2 billion buyout but denied its request for indefinite waivers of rules against owning newspaper and broadcast properties in the same market.
The media conglomerate disclosed yesterday that it had filed the appeal Dec. 3 with the U.S. Circuit Court of Appeals for the District of Columbia. The legal action had been expected since the FCC's Nov. 30 ruling.
The FCC's rejection of Tribune's request for indefinite waivers of cross-ownership rules affects numerous markets where the company owns both newspapers and broadcast stations. By challenging the order, the company gets an automatic extension of current waivers lasting for at least two years and up to six months after the legal case ends.
Tribune's holdings include the Chicago Tribune, Los Angeles Times and seven other daily newspapers along with 23 TV stations and the Chicago Cubs baseball team.