Rosenworcel Faults FCC Republicans for Foot Dragging on Audacy Waiver Vote

FCC Chairwoman Jessica Rosenworcel is pushing back against House GOP criticisms (see 2410070040) of the commission’s September approval of radio broadcaster Audacy’s request for a temporary waiver of foreign-ownership requirements to complete a bankruptcy restructuring that includes George Soros-affiliated entities purchasing its stock. The waiver vote was 3-2, with Republican Commissioners Brendan Carr and Nathan Simington claiming the agency deviated from normal procedure (see 2409300046).

Rosenworcel criticized Carr and Simington in letters to House Commerce Committee Chair Cathy McMorris Rodgers of Washington and 40 other Republicans posted Friday. Rodgers and the other lawmakers claimed the FCC’s approval of the Audacy waiver was suspicious given Soros is a major Democratic donor and the commission made the decision so close to the Nov. 5 presidential election. House Oversight Committee Republicans launched a probe of the Audacy matter in late September (see 2409270053). Carr and Simington didn’t immediately comment.

Rosenworcel told lawmakers she decided to bring Audacy’s waiver application up for a full commission vote specifically at the GOP commissioners' request even though “all other recent transactions involving the emergence of bankruptcy using a practice identical to this here were handled at the Bureau level.” Treating Audacy “differently” by seeking a full commission vote “resulted in a delay in the company’s emergence from bankruptcy, and required Audacy to seek emergency relief in the Bankruptcy Court and further funding before it could emerge from bankruptcy,” Rosenworcel said: Carr and Simington “took 40 days to register their vote” against the waiver, contrary “to the suggestion that review of the Application was somehow fast-tracked.”

“I am concerned that this treatment appears to be motivated by the perceived involvement of a single individual and that individual’s right to free speech,” Rosenworcel said. “As I’ve said many times, the right of broadcasters to speak freely is rooted in that cornerstone of our democracy, the First Amendment. Threats against a broadcast licensee or applicant based on their perceived political leanings, or because we dislike the content of their speech is dangerous and undermines the fundamental principle of free speech.”

“There has been a fair bit of incorrect information circulating about” Audacy’s waiver request and the FCC’s decision, Rosenworcel told the GOP lawmakers. She emphasized the waiver doesn’t obviate the underlying deal from a federal foreign ownership probe and simply “enabled the applicants' prompt emergence from bankruptcy while preserving” the government’s “ability to review” those issues. “Audacy has ensured potential foreign interests will comply with the law,” Rosenworcel said: The company has also “ensured that foreign ownership of its stock will remain below 25 percent, unless and until the Commission considers and approves a petition for declaratory ruling.”