Federal Communications Commission regulators displayed no favoritism toward Sinclair Broadcast Group Inc. while retooling media-ownership rules, according to a new report from the agency’s inspector general.
Two Democratic lawmakers requested the investigation last year, saying they were concerned that FCC Chairman Ajit Pai might have colluded with Sinclair officials to facilitate its planned takeover of Tribune Media Co. The FCC adopted a series of changes to loosen media-ownership rules over the last 18 months, including some that could have helped the Sinclair-Tribune deal pass regulatory muster.
Mr. Pai has denied any collusion since the investigation became known, saying he had long advocated revising the rules to help media owners compete in a rapidly consolidating market.
The inspector general’s report, released Monday, said the investigation “revealed no evidence of impropriety, unscrupulous behavior, favoritism towards Sinclair, or lack of impartiality related to the proposed Sinclair-Tribune merger.”
The Sinclair-Tribune deal was scuttled this summer after Mr. Pai expressed serious concerns with it and referred it to an administrative law judge for further investigation.
Its collapse was a remarkable turnaround for a deal that at one time seemed to stand a strong chance of gaining regulatory approval. Many observers believed the deal would boost Sinclair’s ambitions of establishing a nationwide conservative-leaning TV network.
Mr. Pai, a Republican, said in a statement that he was pleased with the inspector general’s findings.
“I have called on the FCC for many years to update its outdated media ownership regulations to match the realities of the modern marketplace,” Mr. Pai said.
One of the lawmakers who requested the investigation, Rep. Frank Pallone of New Jersey, the top Democrat on the House Energy and Commerce Committee, stood by the decision to look into Mr. Pai’s role in the proposed deal.
Write to John D. McKinnon at john.mckinnon@wsj.com
Appeared in the August 28, 2018, print edition as 'Report Clears FCC Chairman.'