Critics Assail Sinclair as Still Not Making Case for Tribune Deal Public Benefit
Arguing that Sinclair still hasn't articulated a case for why its proposed $6.6 billion Tribune purchase is in the public interest, an array of industry groups, programmers and state attorneys general pushed against FCC approval or called for conditions. The docket 17-179 comments were in response to Sinclair's Oct. 5 replies to an agency information request (see 1710060055). The FCC's 180-day unofficial "shot clock" of the merger review remained paused Friday at 104 and the agency didn't say when it might restart.
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The deal wasn't universally bashed. Free markets and small government group FreedomWorks Foundation said the agency should take a holistic look at competition, investment and diversity issues when weighing this and other transactions instead of focusing on each category individually. It also argued that broadcast's declining viewership numbers help argue for Sinclair/Tribune, since the deal would lead to economies of scale that could lead to additional local content and news programming.
The "little to no effort" Sinclair put into showing how the deal would serve the public interest is its acknowledgement the deal doesn't, the Computer & Communications Industry Association said. The group criticized Sinclair for not having committed to adding any jobs in the transaction, and said the debt Sinclair is taking on would prevent it from doing so. It also complained of the deal reducing localism and aiding Sinclair's "longstanding goal" of delaying and dominating the repacking process. NTCA similarly said Sinclair's replies are "continued side-stepping of the harms" that will come from higher retransmission consent fees.
Sinclair and Tribune cited higher retransmission prices as the transaction's main benefit, but that's competitive harm, Dish Network said. It also criticized the FCC as not having done sufficient competitive analysis, warning approval would have difficulty "escap[ing] the fate of reversal or remand" when considering appellate court precedent that has criticized the agency for not doing an adequate analysis or engaging in reasoned decision-making.
The National Cable TV Cooperative said it rarely comments on mergers, but its Sinclair experiences show a company using its size to try to force "unreasonable and above-market terms through high-pressure tactics" that are going to worsen post merger.
The FCC's "preposterous" reinstatement of the UHF discount, axing the main studio rule and proposed changes to the media ownership rules all suggest it will do whatever it can to approve Sinclair/Tribune, but the deal still would violate federal duopoly rules, Free Press said. It and Demand Progress (see here and here) submitted petition signatures in opposition to the deal.
A number of submitters asked for conditions or further Sinclair input. Minus any definitive plan to comply with FCC ownership rules or opportunity for the public to weigh in on the plan, the Sinclair/Tribune review should be paused, NCTA said. It also said, given past Sinclair practices, the broadcaster should especially have to show how it will comply without divesting stations to sidecars it manages and controls or putting multiple top-four affiliate signals on the same broadcast station as multicast signals. The cable group also said if the FCC modifies its media ownership rules and Sinclair amends its pending applications to acquire more TV stations, that amendment would be substantial enough to warrant a new notice of the application for public comment and starting the shot clock over.
A group of independent programmers -- One America News Network/AWE, Ride TV Network, Cinémoi and TheBlaze -- also pushed for Sinclair being required to give specific divestiture plans and to submit a new application on proposed transaction modifications if the FCC modifies its ownership rules.
The shot clock should be suspended until Sinclair files responsive answers about its ATSC 3.0 plans, and the FCC should issue a second request for information for documents about competitive issues petitioners have raised such as it allegedly stalling the repack, forcing others to adopt ATSC 3.0 and sign sidecar agreements, the Competitive Carriers Association said.
Pointing to the ills of significant media consolidation, the attorneys general of Illinois, Maryland, Massachusetts and Rhode Island said the agency, at minimum, should postpone consideration until after the U.S. Court of Appeals for the D.C. Circuit reviews the FCC's reinstating the UHF discount. Even with the UHF discount in place, New Sinclair would exceed the national media ownership cap, Consumers Union said, arguing the deal should come with divestiture of some stations to comply with the cap. And Horry County, South Carolina's, Horry Telephone Cooperative -- pointing to its first-hand experience with Sinclair's high retrans rates and "‘take it or leave it’ type negotiations" -- said any FCC approval should be conditioned on a 10-year retransmission rate freeze.