FCC's Note 11 Rule Outside Agency Authority, Gray Tells 11th Circuit

The FCC’s rule barring stations from using affiliation deals to get around ownership limits falls outside the agency's congressional authority, Gray Television told the 11th U.S. Circuit Court of Appeals Wednesday. In a supplemental brief (docket 22-14274), Gray said the appellate court should determine that authority's scope and meaning without deference to the commission. The 11th Circuit earlier this month requested a brief about the effects of the U.S. Supreme Court's Loper Bright decision (see 2407110058). Gray is appealing a $518,000 forfeiture order over its alleged violation of the FCCs "Note 11" affiliation deals rule related to its purchase of the network affiliation of an Anchorage TV station (see 2301040059). The FCC has 14 days to respond to the supplemental brief. In its brief, Gray said Loper Bright mandates that the court first resolve whether the agency had statutory authority to promulgate and enforce Note 11. It said while Congress gave the FCC regulatory authority over license transfers, Note 11 and the forfeiture order are about what the FCC considers the "functional equivalent" of a license transfer.