Senate Committee Rescinds FCC Gift to Media Giants
Feature Story by civilrights.org staff - 7/9/2003
The Senate Commerce Committee has voted to overrule the Federal Communications Commission's recent decision to free media companies of ownership limits by restoring longstanding consolidation restrictions.The Senate Commerce Committee introduced a bill to reverse the FCC decision and restore the six media ownership rules immediately after the FCC's June 2 vote. The restored rules are intended to preserve diversity in media outlets, including television and newspapers.
In late May, Powell announced a rule change to lift restrictions on media ownership, enabling media companies to increase market share and own newspapers and television stations in the same city. Under these new rules, individual media companies would be able to reach 45% of American households- up from 35% under the traditional rules.
Michael J. Copps, one of the two Commissioners that voted against the changes, stated that when similar changes had been made in regulation of radio ownership, "Diversity of programming suffered. Homogenized music and standardized programming crowded out local and regional talent. Creative local artists found it evermore difficult to obtain play time on the air. Editorial opinion polarized. Competition in many towns became non-existent as a few companies -- in some cases a single company -- bought up virtually every station in the market. This experience should terrify us as we consider visiting upon television and newspapers what we have inflicted upon radio." Copps later testified in front of the Senate Commerce Committee opposing the rule changes.
Despite an outpouring of citizen support for the ownership restrictions, and additional support from organizations as diverse as the Leadership Conference on Civil Rights (LCCR) and the National Rifle Association, the FCC panel voted 3-2 along party lines to alter the restrictions, with all three Republicans voting for the changes.
Although the FCC rulings were critical to all Americans, Chairman Powell did not attend the nine hearings on the FCC rulings, and had only one official forum in which he discussed the FCC's plans to review the rules.
Powell's ruling received strong criticism from all sides of the political spectrum. Wade Henderson, Executive Director of LCCR, said, "American democracy requires a competitive media environment. A media market with diverse voices is critical to a civil rights agenda that ensures equity and democratic participation in areas vital to the health of our nation and our communities?education, economic opportunity, the environment, health care and political participation."
The six media ownership rules (with the year of adoption) that were altered by the FCC vote are:
- Broadcast-newspaper Cross Ban Ownership (1975)- prevents ownership of a television station and newspaper in the same city
- Local Radio Ownership Rule (1941)- prohibits radio stations from operating a large percentage of companies in the same area
- National TV Ownership Rule (1941)- allows television stations to reach a maximum of 35% of American households
- Local TV Multiple Ownership (1964)- prohibits television stations from monopoly in the same marketing area.
- Radio/TV Cross-Ownership Restriction (1964)- prevents ownership of a radio and television station in the same market.
- Dual Television Network Rule (1946)- prohibits a merger between radio and television stations. In particular, ABC, CBS, Fox and NBC are not allowed to merge.
