History of the Media Cross Ownership Ban

In 1975, the Federal Communications Commission adopted a rule called the newspaper / broadcast cross-ownership ban which prohibited a newspaper and a broadcast or radio station from being co-owned if located in the same market. Over forty newspaper / broadcast cross-owned properties were grandfathered into place when the rule was established. For the last 30 years, this rule has not been changed despite repeated findings by the FCC since 1996 that it needs to be reviewed and revised.

In 2003, the Commission adopted new media ownership rules, which included the relaxation of the newspaper / broadcast cross-ownership ban. In its place, the FCC adopted general cross-media ownership limits. The Third Circuit in 2004 remanded the media ownership rules back to the FCC. The Third Circuit endorsed the FCC's conclusion that newspaper-owned broadcast stations produce local news in higher quantity and with better quality than other stations based on evidence obtained from the forty markets of grandfathered newspaper / broadcast crossed-owned properties. However, the Court found the FCC had "not sufficiently justified its particular chosen numerical limits for local television ownership, local radio ownership or cross-ownership of media within local markets." The Third Circuit also held that the FCC properly decided to retain some limits on cross-media consolidation to ensure diversity in the local marketplace, but it found flaws in the "Diversity Index" the FCC used to support its cross-media limits. In 2005, the Supreme Court denied an appeal by newspapers and broadcasters to review the Third Circuit's decision.

The FCC is now charged with tackling media ownership rules again, and it is likely to craft new rules consistent with its reading of the Third Circuit's decision.
In remarks before NAA's 2006 Annual Convention in Chicago, Chairman Martin shared his perspective on the newspaper/broadcast cross-ownership rule and forecasted the challenges to come in the FCC's next review of its media ownership rules.

In June 2006, the FCC adopted a Further Notice of Proposed Rulemaking seeking comment on how to address the issues raised by the Third Circuit Court. The Notice also opens up a comprehensive quadrennial review of all media ownership rules as required by Congress. The notice invites comment on “how the Commission should address newspaper/broadcast cross-ownership issues.” NAA filed comments at the end of October reminding the Commission that the agency and the Third Circuit Court agreed that the ban on newspaper/broadcast cross-ownership is not necessary to fulfill the FCC’s interests in promoting competition, localism or viewpoint diversity. Reply comments are due in mid December 2006.

The Commission is holding six hearings around the country to solicit input for this rulemaking from the general public. The first hearing was held in Los Angeles on Oct. 3. The Commission is not expected to issue a rule until late summer 2007.

First Published:
August 2, 2007