FCC's 2022 Quadrennial Review to Draw Inspiration from Court Decision that Abolishes Certain Ownership Regulations, According to Carr
A significant court ruling by the 8th U.S. Circuit Court of Appeals on the FCC's 2018 Quadrennial Review has set the stage for the 2022 Quadrennial Review of broadcast ownership regulations. The court's decision, handed down in July 2021, has far-reaching implications for the upcoming review.
The court's ruling vacated the FCC's "Top Four Prohibition" rule, which barred a single station group from owning more than one of the top-four TV stations in a given market. The court found the FCC’s retention of this rule arbitrary and unsupported by current evidence, ruling that the FCC failed to justify the rule in light of new market realities and competition from digital platforms.
The court's decision has several key implications for the 2022 Quadrennial Review:
- FCC’s Deregulatory Mandate: The court emphasized that under Section 202(h) of the Telecommunications Act of 1996, the FCC may only relax its ownership regulations during quadrennial reviews, not tighten them. This limits the FCC’s ability to introduce stricter ownership rules in the 2022 review and underscores a deregulatory trajectory consistent with congressional intent.
- Impact on Top-Four Station Ownership Rule: Since the court vacated the Top Four Prohibition and its related tightening via the Note 11 Amendment, the FCC must revisit or remove this rule in the 2022 review, effectively allowing ownership combinations of multiple top-four stations in markets where such consolidation was previously prohibited.
- Regulatory Review Approach: FCC Chair Brendan Carr confirmed that the 2022 review process “will be inspired” by the court ruling, taking into account the decision’s affirmation of deregulatory intent and the need to move forward consistent with the ruling. This suggests the 2022 review will likely continue loosening ownership restrictions, especially regarding TV station combinations.
- Preservation of Other Ownership Rules: While the court struck down the Top Four Prohibition, it upheld other broadcast ownership rules. Therefore, the 2022 review will proceed with most other rules intact but must reconsider ownership limits specifically related to top-four stations.
FCC Chair Brendan Carr applauded the ruling on July 23, 2021, stating that it makes clear the deregulatory intent that Congress had when setting the FCC on the path of the Quadrennial reviews. Carr believes that the rules and regulations on the books have held back investment in local news and journalism. He indicated that the FCC needs to move forward with the 2022 Quadrennial Review, with the new decision in mind.
Carr's main focus as a media policy matter is to re-empower local TV stations relative to national programming. He believes that the rules have been on the books for too long and are outdated. Carr did not specify which current ownership rules the FCC is particularly interested in reevaluating.
The debate on whether a Public Notice issued for the 2022 Quadrennial Review officially launched the review remains unresolved. The FCC is seeking comments on the current ownership rules, with comments and replies to comments due in August. The 2022 Quadrennial Review of broadcast ownership regulation is scheduled to take place in 2022.
- The court's decision on the FCC's 2018 Quadrennial Review has set the stage for the 2022 Quadrennial Review of broadcast ownership regulations, with implications for the media industry, particularly in the context of competition from digital platforms.
- In the 2022 Quadrennial Review, the FCC's deregulatory mandate under Section 202(h) of the Telecommunications Act of 1996 limits the FCC’s ability to introduce stricter ownership rules, such as the Top Four Prohibition, which was vacated by the court.
- FCC Chair Brendan Carr has indicated that the 2022 review will likely continue loosening ownership restrictions, especially regarding TV station combinations, with the aim of re-empowering local TV stations relative to national programming.
- The FCC is seeking comments from the public on the current ownership rules, and the 2022 Quadrennial Review of broadcast ownership regulation is scheduled to take place in 2022, with potential implications for the financing and operations of the banking-and-insurance and content industries that rely on broadcast media.
