FCC Chairman Seeks to Ease Broadcast-Newspaper Ownership Ban

The nation's top communications regulator defended his effort to ease a decades-old restriction on the ownership of newspapers and broadcast stations Wednesday, telling Washington lawmakers that change is needed to help foundering newspapers and improve local news.

Kevin Martin, the Federal Communications Commission's Republican chairman, wants his agency to vote on his plan on Dec. 18, a date that some lawmakers, the agency's Democrats and many consumer advocates call a rush to judgment.

They want more time to review public comments and study how the change could affect the news people see, hear and read.

Martin, testifying alongside the other four FCC members, told the House subcommittee on telecommunications and the Internet that his proposal is backed by research, public hearings and court guidance.

He also denied that loopholes in his plan would make mergers easy and undermine conditions intended to protect the diversity of news sources.

"The media marketplace is considerably different than it was when the newspaper-broadcast cross-ownership rule was put in place more than thirty years ago," Martin said. "Consumers have benefited from the explosion of new sources of news and information, but according to almost every measure newspapers are struggling."

"Allowing cross-ownership may help to forestall the erosion in local news coverage by enabling companies to share local news-gathering costs across multiple media platforms," he said.

The rule Martin seeks to relax dates from the 1970s and bans companies from owning a newspaper and a television or radio station in the same market. Some joint ownership arrangements predate the ban, while other companies receive individual waivers.

The ban is one of half a dozen ownership rules adopted between 1941 and 1975 that limit how many media properties a single company can own and in what combinations. The intent was to promote competition and diversity of opinion and keep a handful of giant companies from controlling news and entertainment.

A 1996 law requires the FCC to study the rules every two years and repeal or modify them to match the public's best interest.

In recent years, a Republican-led FCC and many media companies have sought to relax or abolish the rules, arguing they are outdated and harmful in a more diverse media landscape reshaped by cable television, satellite broadcasts and the Internet.

Those attempts have been rebuffed by courts or Congress and sent back to the FCC.

Media consolidation opponents say weaker rules could trigger a merger frenzy, and that the apparent diversity of news is misleading since a limited number of companies control most major outlets.

Unlike previous agency efforts, Martin's current proposal addresses only the newspaper-broadcast ownership rule. His change, which he called a "minor loosening of the ban," would allow for cross-ownership in the 20 largest media markets under certain conditions.

The commission's two Democrats oppose Martin's plan, while the two other Republicans appear to support it.

Democrats Michael Copps and Jonathan Adelstein said loose standards and vague language in Martin's proposal open the door to media mergers in markets of all sizes. Exceptions could be based on conditions such as whether a combination improves local news or a paper's financial condition.

Copps said Martin's requirements "are about as tough as a bowl of Jell-O. You don't even have to meet them all — it's just a list of things the FCC will consider."

Under questioning from subcommittee Chairman Edward Markey, D-Mass., Martin said the proposed rule would provide a "high hurdle" for mergers in smaller markets and he would work with the Democrats to address their concerns over wording.

That's needed, Copps said, because "given how the FCC has considered media regulation in recent years, I have about as much confidence that a proposed combination will be turned down as I do that the next commission meeting will start on time."

Recent FCC monthly meetings have had lengthy delays because of disputes among the commissioners. Some of that friction was apparent at the hearing.

House Commerce Committee Chairman John Dingell, D-Mich., on Monday ordered an investigation of the FCC to see if it is following proper and open procedures. At the hearing, he said the agency "appears to be broken."

Adelstein also challenged Martin's premise that relaxing the ban would improve local news, citing research indicating the amount of local news decreases in markets with cross-ownership. He also said there's no evidence cross-ownership helps newspapers.

"Americans from all political perspectives, whether right, left and virtually everyone in between, do not want a handful of companies dominating their primary sources of news and information," he said.

Most lawmakers at the hearing Wednesday appeared more concerned with Martin's timetable and allowing enough time for comment and study rather than the substance of his proposal.

The Senate Commerce Committee approved a bill on Tuesday that would delay FCC action on easing media restrictions for at least six months and require the agency to complete studies on local media and minority ownership.

But Rep. Joe Barton, R-Texas, supported Martin's proposal and said the FCC should do even more to ease other ownership restrictions.

"With all these independent competing sources of news and information, the rationale for the ban — preserving localism and diversity — starts to collapse," Barton said. "Newspapers are so strapped these days that the ban probably hinders localism and diversity."

On a second panel at the lengthy hearing, Newspaper Association of America Chief Executive John Sturm said eliminating the cross-ownership ban is long overdue and Martin's proposal is "extremely limited."

"It is time for newspapers to be allowed to compete like everyone else," he said.

Media companies with newspaper and broadcast properties that oppose the ban include Tribune Co., Gannett Co. Inc. and Cox Enterprises Inc., the Atlanta-based parent of Cox Newspapers.

"Cox has long supported elimination of the newspaper-broadcast cross-ownership rules," said Sandy Wilson, vice president for public policy.

In Atlanta and Dayton, Ohio, the company owns the major newspaper, a TV station and several radio stations under a "grandfather" clause for longtime holdings. But a Cox spokesman said the company might have to seek waivers for some recently acquired properties in those areas, such as WALR-FM radio in Atlanta and daily newspapers in Hamilton and Middletown, Ohio.

On the Web:

FCC media ownership site: www.fcc.gov/ownership