Supreme Court Hints It Will Let FCC Relax Media-Ownership Limits

(Bloomberg) -- The Supreme Court suggested it will let the Federal Communications Commission ease limits on the ownership of local media outlets, giving the broadcast industry and President Donald Trump’s administration a mostly favorable reception in a long-running fight.

Hearing arguments by phone Tuesday, the justices questioned a federal appeals court decision that blocked the changes. The appeals court told the FCC to first study the potential impact on female and minority ownership in the media industry.

Republicans and the broadcast industry have been seeking to relax the ownership limits for decades, saying the restrictions are badly outdated given the proliferation of new information sources. Easing the rules could mean a wave of consolidation affecting TV stations nationwide.

“We’re stuck with rules from the 1970s that 20 years ago, 25 years ago, Congress said were outdated,” Justice Neil Gorsuch said to a lawyer challenging the changes.

Companies including News Corp., Sinclair Broadcast Group Inc., Fox Corp. and Nexstar Media Group Inc. are part of a group backing the FCC efforts to ease the rules. Advocacy organizations led by Prometheus Radio Project are fighting the FCC changes.

The 2017 plan would eliminate a rule that had barred companies from owning two television stations in a market that didn’t have at least eight independently owned stations. The commission is also seeking to allow companies to own two of the top four stations in some markets.

In addition, the FCC would lift separate bans on ownership of both a daily print newspaper and a broadcast station in the same coverage area, and on ownership of both a radio and television station in a single market.

The cases are FCC v. Prometheus Radio Project, 19-1231, and National Association of Broadcasters v. Prometheus Radio Project, 19-1241.

©2021 Bloomberg L.P.