2003 Ownership Fight
If the media ownership rules are eliminated, the last vestiges of local media competition will be swept away, replacing varied viewpoints with "media company towns," where Fox News, Tribune Co., Sinclair Broadcast Group or the New York Times completely dominate local public discourse.
If you've got déjà vu, that's because the FCC tried to push through the exact same set of rules in 2003. The commission voted 3-to-2 along party lines to lift broadcast cross-ownership restrictions, loosen limits on local broadcast ownership, and permit one company to own stations reaching 45 percent of the national audience.
These changes were made with little or no public input. In fact, then-Chairman Michael Powell appeared at just a single official public hearing in Richmond, Va., limiting the rest of his appearances to speeches before industry and trade groups.
But the new rules were met with an unprecedented groundswell of popular opposition. A broad array of groups from across the political spectrum -- many of whom have reunited as the StopBigMedia.com Coalition -- urged their members to weigh in against the changes. Nearly 3 million people contacted the FCC and Congress in 2003. More than 99 percent of the public comments to the FCC were against media consolidation.
In response to the public outcry, a bipartisan majority in the Senate voted to overturn the rule changes. Congress eventually reached a compromise -- limiting the number of stations one company could own to 39 percent of the national audience.
Then in June 2004 – a year after the FCC's vote -- a federal appeals court overturned the other changes to the media ownership limits in a landmark decision in the case of Prometheus Radio Project v. FCC. The court's ruling sent the FCC's controversial rules back to the drawing board.
The most significant aspects of the court ruling:
- The court rejected the rule changes that would have allowed for "cross-ownership" of newspapers and broadcast stations and the concentration of broadcast ownership in local markets.
- The court took aim at the FCC's faulty methodology, particularly the so-called "diversity index" used by the agency to measure the influence of different kinds of media on local communities.
- Critically, the court placed the burden of proof on the FCC, stating that unless sufficient evidence could be shown warranting their removal, media ownership limits should be kept in place.
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