ruling overturned on broadcasting regulation allowing up to four major stations in a single market to be owned by a single entity.
In a significant ruling, the 8th U.S. Circuit Court of Appeals has vacated the Federal Communications Commission's (FCC) "Top-Four Prohibition" rule for broadcast TV ownership [1][2][4]. This decision marks a shift that challenges the long-standing regulation, which had restricted consolidation of major network affiliates such as ABC, CBS, NBC, and FOX [2][4].
The court found that the FCC acted arbitrarily and capriciously by retaining and tightening this rule in its 2023 order. The ruling states that the FCC relied too heavily on outdated studies and failed to justify the rule with current evidence [1][2].
FCC Chairman Brendan Carr welcomed the decision, stating that the longstanding approach failed to promote the public interest and hindered competition for local news sources in today's media landscape [1]. The court’s decision gives the FCC 90 days to respond before the Top-Four rule is formally vacated [2].
On the radio side, however, the court upheld the FCC's "subcaps" limits on AM and FM ownership, agreeing that these were predictive judgments warranting judicial deference to prevent excessive consolidation [2].
The ruling comes at a time when broadcasters have been hopeful that the FCC might significantly revise or eliminate the ownership rules. FCC Chair Brendan Carr has vowed to eliminate rules that make it harder for broadcasters to fund local news and has expressed disappointment that the 8th Circuit ruling did not address radio ownership restrictions [3].
Carr has been a champion for empowering local stations and looks forward to working with the FCC to modernize local radio ownership rules [5]. The agency has opened a docket calling for public comment on the rules [6].
The decision was in response to a challenge by the National Association of Broadcasters and a coalition of local broadcasters against a December 2023 FCC order retaining existing regulations as part of its 2018 quadrennial review [7]. NAB president and CEO Curtis LeGeyt said, "NAB is extremely pleased with the Eighth Circuit's decision to vacate the previous FCC's arbitrary and outdated top-four prohibition" [8].
The ruling is a major step forward for local television broadcasters seeking to compete and thrive in a vastly transformed media marketplace. Carr has emphasized the importance of ensuring local broadcasters can thrive in the communities they serve across the nation [5].
References: [1] https://www.fiercevideo.com/video/fcc-chairman-carr-welcomes-8th-circuit-decision-top-four-prohibition-rule [2] https://www.broadcastingcable.com/news/washington/8th-circuit-vacates-fcc-top-four-prohibition-rule-on-tv-ownership/189315 [3] https://www.fiercevideo.com/video/carr-vows-eliminate-rules-make-harder-broadcasters-fund-local-news [4] https://www.multichannel.com/news/broadcast/8th-circuit-vacates-fcc-rules-against-station-group-owning-top-four-tv-stations/189315 [5] https://www.fiercevideo.com/video/carr-looks-forward-working-fcc-modernize-local-radio-ownership-rules [6] https://www.fcc.gov/document/fcc-opens-docket-review-broadcast-ownership-rules [7] https://www.broadcastingcable.com/news/washington/8th-circuit-vacates-fcc-rules-against-station-group-owning-top-four-tv-stations/189315 [8] https://www.broadcastingcable.com/news/washington/8th-circuit-vacates-fcc-rules-against-station-group-owning-top-four-tv-stations/189315
- The 8th U.S. Circuit Court of Appeals has ruled to vacate the FCC's "Top-Four Prohibition" rule for broadcast TV ownership, a decision that challenges the long-standing regulation limiting consolidation of major network affiliates.
- The court found that the FCC acted arbitrarily and capriciously by retaining and tightening this rule in its 2023 order, relying heavily on outdated studies and failing to justify the rule with current evidence.
- FCC Chairman Brendan Carr welcomed the decision, stating that the longstanding approach failed to promote the public interest and hindered competition for local news sources in today's media landscape.
- The court’s decision gives the FCC 90 days to respond before the Top-Four rule is formally vacated, opening the door for broadcasters to potentially compete more effectively in a digital and media-dominated marketplace.
- On the radio side, the court upheld the FCC’s "subcaps" limits on AM and FM ownership, acknowledging these were predictive judgments warranting judicial deference to prevent excessive consolidation.
- The ruling comes at a time when broadcasters are hopeful that the FCC might significantly revise or eliminate the ownership rules, as FCC Chair Brendan Carr has pledged to eliminate rules that makes it harder for broadcasters to fund local news.
- The decision is a major step forward for local television broadcasters, as they seek to compete and thrive in a vastly transformed media marketplace, with Carr emphasizing the importance of ensuring local broadcasters can thrive in the communities they serve across the nation.
