FCC Loses 3rd Circuit Media Ownership Case

The FCC lost a media ownership court case in which broadcasters appealed an order limiting TV joint sales agreements in some circumstances and public interest groups appealed on a lack of further regulation and on concerns the commission didn't fully address diversity issues. The 3rd Circuit Court of Appeals also ordered mediation. It vacated and remanded to the commission the TV JSA agreement rule, in a brief order Wednesday.

Likewise remanded to the agency was "the diversity eligible entity matter," said the court. "The Commission and Citizen Petitioners shall engage in mediation, conducted by Chief Circuit Mediator Joseph Torregrossa, to set a timetable for reaching final agency action on the eligible entity definition. Within sixty days from the date of this judgment, the parties shall notify the Court whether they were able to reach a mutually agreeable resolution, and if so, what that resolution is. If, after sixty days, the parties are unable to reach an agreement, the panel will promulgate a schedule it deems appropriate."

The outcome comported with expectations, according to a Communications Daily report from oral argument in Philadelphia last month in the case at http://bit.ly/25h1lmA. The ruling is at http://1.usa.gov/20BfW9o.

Parties allied with or sympathetic to both sides, broadcasters and public interest groups, reacted to the ruling with criticism of the commission. Shortly after the decision was released, Commissioner Ajit Pai issued a statement at http://fcc.us/1YZkplN saying he is "pleased" the 3rd Circuit "struck down the FCC’s unlawful attempt to sharply restrict television stations’ ability to enter into joint sales agreements." Andrew Schwartzman, senior counselor at Georgetown University's Institute for Public Representation, which represents challenger Prometheus Radio Project, said he feels sorry for FCC Chairman Tom Wheeler. "The actions and inactions of three former Chairmen have undermined diversity of ownership," emailed Schwartzman about the ruling, in the case known as Prometheus III. "The failure to adhere to Congressional deadlines has now made things worse by temporarily eliminating the television JSA rule. The Commission should pay particular attention to the Court's admonition that it consider the effect of its actions on minority and female ownership."

“NAB could not be more pleased with the Third Circuit decision," emailed a spokesman. "At long last, this opinion directs the FCC to do its job and adopt broadcast ownership rules that reflect the modern world." The FCC said it had no immediate comment.