Event Driven Takeaways
- The chairman of the FCC and his staff are under additional scrutiny from Democratic and Independent lawmakers in both the House and Senate as they either drill down into the details of the FCC’s recent actions that allowed TRCO/SBGI to move forward, or are merely voicing their opposition. Lawmakers are seeking more details on Pai’s past and future actions on TRCO/SBGI directly and on media ownership regulations more broadly.
- In a Sept. 29 letter, three Democrats on the House Energy and Commerce Committee asked for a response by Oct. 12 from the FCC on whether it will pause its informal 180-day merger review shot clock. The pause could help outside parties seeking more time to weigh in on the deal gain more time, and would let agency staff take more time to review TRCO/SBGI’s responses to a Sept. 14 request for additional information.
- House Democrats are pressuring Pai and his staff to turn over all correspondence with Sinclair and its representatives -including materials exempt from FOIA- since the Nov. 8, 2016 election. Some groups have claimed that Pai’s FCC is giving Sinclair preferential treatment through its regulations to help it acquire Tribune, though the FCC and Sinclair have denied that charge.
- House Democrats remain concerned by the timing of the FCC’s action to reinstate the “UHF discount,” currently the subject of litigation, with the announcement of the TRCO/SBGI transaction, which relies on the discount to fall under national media ownership caps.
The politics and timing of TRCO/SBGI are under increasing scrutiny as Democrats in both the House and Senate either press the FCC for significantly more information on the agency’s actions on media ownership rules.
In a Sept. 29
letter, all 13 Democrats on the Senate Commerce, Science and Transportation Committee, which has jurisdiction over the FCC, 10 other democratic senators as well as Sen. Bernie Sanders (I-VT) excoriated FCC Chairman Ajit Pai for what they called “actions to weaken or eliminate” the FCC’s media ownership limits.
They called out Pai’s move in April to reinstate the so-called UHF discount, used by broadcasters to calculate their national audience reach, which they said “contradicts Congress’ intent in adopting a statutory national media ownership cap.”
They also raised concern with Pai’s expected move by the end of the year to further deregulate the broadcast industry. “The sum total of such moves would be nothing less than a declaration by you, as the nation’s sole broadcast regulator, that further consolidation in the broadcast media marketplace is warranted and welcome,” the senators said.
They advised that the FCC not take further action that would relax media ownership restrictions until after completing a full quadrennial media ownership review, which would be expected to be finalized in 2018.
While the senators made their opposition to further broadcast deregulation clear, a letter from three notable House Democrats could prove more impactful on both the deal and the Republican-led FCC.
The
letter, also sent Sept. 29, is from Rep. Frank Pallone (D-NJ), ranking member of the House Energy and Commerce Committee, Rep. Mike Doyle (D-PA), ranking member of that body’s Communications and Technology Subcommittee, which has direct jurisdiction over the FCC, and Rep. Diana DeGette, (D-CO), ranking member of House E&C’s Oversight and Investigations Subcommittee.
In it, the lawmakers press Pai and his staff for any correspondence with Sinclair or its lobbyists and lawyers since the Nov. 8, 2016 election. They specifically ask Pai and his staff for correspondence that might have been conducted through Facebook messenger, other social messaging apps, or that aren’t subject to FOIA.
They also ask whether Pai will instruct the Media Bureau reviewing TRCO/SBGI to pause its informal, 180-day merger review shot clock. The FCC hasn’t, so far, given any indication that it intends to do so.
They also asked Pai to provide explicit timing on when he plans to act on revisions to the 39% national TV ownership cap, local TV ownership rules, and other broadcast media ownership restrictions.
The House lawmakers are seeking a response by Oct. 12.
--Lydia Beyoud