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[IP] Fed. Appeals Court reverses significant parts of the FCC's new Media Ownership Rules





Begin forwarded message:

From: eackerma@xxxxxxxxxxx
Date: June 24, 2004 3:01:19 PM EDT
To: dave@xxxxxxxxxx
Subject: Fed. Appeals Court reverses significant parts of the FCC's new Media Ownership Rules

Greetings Dave,

The 3rd Circuit Court of Appeals has released a 2-1 opinion in response to legal challenges to the FCC's relaxed media ownership rules.
http://www.ca3.uscourts.gov/staymotion/033388p.pdf

The opinion is a hefty read, addressing challenges from industry groups as well as consumer organizations, and siding with each at times. The majority essentially says the FCC failed to justify its decision or was inconsistent in some portions of the rules, so the court is sending the order back to the FCC to write clear justifications and fix inconsistencies.

The practical impact is that in the mean time, the new rules are on hold - everyone waits again for definitive guidance from Congress or revised rules from the FCC.

From the opinion's conclusion:
"Though we affirm much of the Commission?s Order, we have identified several provisions in which the Commission falls short of its obligation to justify its decisions to retain, repeal, or modify its media ownership regulations with reasoned analysis. The Commission?s derivation of new Cross-Media Limits, and its modification of the numerical limits on both television and radio station ownership in local markets, all have the same essential flaw: an unjustified assumption that media outlets of the same type make an equal contribution to diversity and competition in local markets. We thus remand for the Commission to justify or modify its approach to setting numerical limits.


-Ethan Ackerman

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