SCOTUS Could Hurt Ownership Diversity in Prometheus Case, NABOB Told

Putting the question of broadcast ownership diversity in the hands of the Supreme Court could have consequences for minorities, said Diane Holland, aide to FCC Commissioner Geoffrey Starks, and National Association of Black-Owned Broadcasters President Jim Winston during a NABOB conference (see 2010020059) panel Friday. The matter going before “the very conservative” court could “do some damage,” Holland said. Court rulings that eliminate the FCC obligation to consider diversity or make efforts to examine the effects of the agency's decisions on diversity unconstitutional could make efforts to address ownership inequality more difficult, she said.

SCOTUS “may not be the answer for diversity, in the short term at any rate,” Winston said. NABOB was among successful challengers of ownership rules at the 3rd U.S. Circuit Court of Appeals, which are on the table in the pending high court case.

Whether ownership diversity matters isn’t what's at stake in the case, said NAB General Counsel Rick Kaplan. NAB -- along with the FCC -- appealed the 3rd Circuit’s Prometheus IV decision to SCOTUS. Kaplan said diversity matters, but NAB objects to the 3rd Circuit making it the only thing that mattered. “If the FCC is not compelled to address those issues, it won’t,” said Multicultural Media, Telecom and Internet Council Senior Adviser David Honig. MMTC joined with NABOB in Prometheus IV.

A bill from Rep. G.K Butterfield, D-N.C., that would restore the minority tax certificate is the most promising avenue for something on media ownership to come from Congress, Honig said. The bill’s outlook could be greatly improved if Congress “flips” after the November elections, he said. Charlyn Stanberry, chief of staff to Rep. Yvette Clarke, D-N.Y., also said if Democrats take control of Congress, media ownership would likely be an important issue. She said Congress could be active during a post-election “lame-duck” session on COVID-19 relief and the federal budget.

An FCC proposal to relax or change Communications Decency Act Section 230 protections for tech companies (see 2010150057) could make it harder for companies to block hate speech, which could have disastrous effects on the economy, Honig said. “If people live in fear, they don’t buy stuff.” It's doubtful the FCC has enough time to complete such a rulemaking by Inauguration Day, he said.

Starks is “impressed” by the support from civil rights organizations for a petition asking the FCC to allow zoned broadcast coverage, tech that would allow geotargeted radio broadcasting (see 2006040024), Holland said. Starks “looked at it and thinks it could have a real impact,” she said. Honig said the proposal would be particularly helpful to minority broadcasters, who often have lower-power stations located farther from population centers.