The U.S. Dist. Court, Conn., ruling that The Tribune Company was in violation of the FCC’s newspaper-TV cross- ownership rules (CD March 22 p7) may not affect similar cases, said Media Access Project CEO Andrew Schwartzman. “Other cases have much more colorful claims,” he said. An FCC source said it was too soon to determine how the ruling would possibly affect other broadcasters who seek waivers to the media ownership rules. The ruling that the Tribune divest its WTXX (WB) Waterbury, Conn., station was “wrong and seriously flawed,” the Tribune said in a statement late Mon. The Tribune, which also owns WTIC (Fox) in the same market, purchased The Hartford Courant in 2000, putting it in violation of the FCC’s newspaper- broadcast cross-ownership ban. Since then, the Tribune was granted two 6-month waivers to divest WTXX. The Tribune then sought a permanent waiver. Schwartzman said the Tribune didn’t show that it was working to sell the station but was merely waiting for the courts to rule on the FCC’s media ownership rules. The Tribune argued that the district court judge reached his decision by applying FCC rules that are currently on remand from the 3rd U.S. Appeals Court, Philadelphia. The Tribune, which is appealing the ruling, said nothing in the court’s decision “changes our view on the likelihood of cross-ownership relief. We continue to believe the rule will be relaxed and all Tribune markets will be in compliance without required divestitures.”
Notable CROSS rulings
The U.S. Appeals Court, Conn., ordered Tribune Co. to divest WTXX, Waterbury, Conn., to comply with FCC cross- ownership rules. The decision marks a loss for Tribune, which has sought and received multiple waivers from the FCC to hold on to WTXX, which Tribune claimed had financial troubles. Tribune also owns WTIC-TV, Hartford; the firm would violate FCC ownership rules if it operated the other station, too. So the Tribune sought a waiver arguing WTXX was a failing station. “Tribune’s numerous applications for extensions of time in which to come into compliance with that rule implicitly recognize that it was failing to comply with that rule,” the court said. Tribune plans to appeal, said Tribune Vp Shaun Sheehan.
The acting solicitor gen. filed a conditional cross- petition with the Supreme Court asking that if the court grants review of the media ownership case by various industry parties, it should take up the issue of whether the lower court erred in holding that the media rules weren’t supported by a reasoned analysis. “The court would thus have an opportunity to consider petitioners’ arguments for more stringent review of broadcast ownership rules in the concrete context of the particular rules and rationales adopted by the Commission,” the FCC said.
The Free Press organization again petitioned the FCC to reject Media General’s request for a waiver that would allow it to operate a TV station and newspaper in the same market. In April 2000, Media General acquired WRBL-TV (CBS) Columbus, Ga. Four months later it purchased the Opelika-Auburn News, a daily newspaper located 30 miles from the TV station in Opelika, Ala. FCC rules prevent common ownership of a daily paper and TV station in the same area. “Media General gambled that the FCC would undo the cross-ownership rule before its license in Columbus came up for renewal,” said Free Press Policy Dir. Ben Scott. Earlier, Media General contested Free Press’s standing in a joint petition with the NAACP over the company’s ownership of WMBB-TV (ABC) Panama City and the Jackson County Floridian in Marianna (CD Feb 22 p9).
Municipalities are facing more state bills this year seeking to bar or restrict their providing cable, telecom or broadband services, and they say the proposals contain more extensive barriers than in years past. “We see this every year, but this year there are more bills than there has been in years past,” said attorney James Baller, who represents municipalities: “Most certainly, this a very active and volatile situation.”
After House Commerce Committee Chmn. Barton (R-Tex.) told NAB Tues. that he had the votes in the House to force a Dec. 31, 2006, deadline on DTV transition, he praised broadcasters around the country for their grassroots organization and support of their local representatives. He said it was their “ace in the hole.” “If you play your aces, not your deuces, you'll be okay,” he told the NAB State Leadership Conference.
Media mergers need to be held to a higher level of scrutiny than telecom acquisitions, Comr. Adelstein told reporters at a news conference Wed. “It has a direct impact on our free exchange of ideas and on our very democracy. The other mergers have impacts on our marketplace,” he said.
The group Free Press doesn’t have standing in its joint petition with the NAACP to deny Media General’s request for a permanent waiver of the newspaper-broadcast cross-ownership rules, Media General said in an FCC filing. Media General wants to keep both WMBB-TV (Ch. 13, ABC) Panama City and the Jackson County Floridian in Marianna. The company claimed that Fress Press failed to show any of its members are affected by the 2 media entities. Media General also disputed claims by NAACP and Free Press that the news content at both media outlets was the same: “Not only do the 2 outlets focus on differing markets and geographic areas, as explained in detail in the opposition, but they have entirely separate and independent news and editorial staffs.” Contrary to the group’s opinion, Media General isn’t seeking to change the FCC’s cross-ownership waiver standards, it said. The waiver it seeks is one that “fits squarely under the public interest rubric” the FCC has applied in the past, Media General said.
The Bells lined up against competitors on a Verizon petition seeking forbearance from Title II and Computer Inquiry rules as they apply to broadband service. The Bells said the broadband marketplace is highly competitive and the regulatory structures they face give cable providers in particular an unfair advantage. Competitors argued that Verizon wants to destroy competition. The 2 sides recently faced off in a similar battle over a BellSouth forbearance petition also before the Commission.
Multicast must-carry rules are on the “fast track” for approval at the Feb. 10 FCC meeting (see note on full agenda in this issue), Comr. Copps said Thurs. at a meeting with reporters. Copps indicated he would vote in favor of the rules, though he’s disappointed with the rulemaking process. Copps also said the Commission is overdue to move forward on intercarrier compensation (ICC) reform, starting with a vote at the same meeting on a proposed rulemaking. Copps encouraged companies and groups that quit the Intercarrier Compensation Forum (ICF) to consider rejoining.