Provisions in the 2018 quadrennial review order could inject uncertainty into negotiations between broadcasters and networks, several broadcast attorneys told us. The order’s extension of the top-four prohibition allows networks to switch an affiliation from one station to another even if that would create a same-market duopoly but only as long as there isn’t “any undue direct or indirect influence from a broadcast entity.” Attorneys told us it isn’t clear what constitutes undue influence. The QR "creates more confusion," said Rob Folliard, Gray Television senior vice president-government relations and distribution. “You can’t have a transaction where there’s confusion.”
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Broadcast attorneys expect likely legal challenges against the FCC’s 2018 quadrennial review order will focus on two questions: Does the Communications Act allow the FCC to tighten regulations during the QR process? And do restrictions on shifting top-four network programming to low-power stations and multicast streams violate the Constitution?
The FCC adopted the 2018 quadrennial review order 3 to 2 late Friday -- on the eve of a three-day holiday weekend -- with both Republican commissioners dissenting. Released Tuesday afternoon, the item extends the top-four prohibition to low-power TV stations and multicast TV channels and makes methodology changes for determining a top-four station. Yet it declines to reconsider the markets in which broadcasters compete or to loosen radio ownership caps. “We take this action to preserve the efficacy of the Top-Four Prohibition because we find it necessary to prevent further exploitation of unintended ambiguities or gaps in the rule,” the order said. “Such exploitation harms competition and denies consumers the benefits of competition.
A Warner Bros. Discovery/Paramount Global combination will likely receive regulatory approval but could encounter challenges at the FCC or DOJ, said industry analysts, reacting to rumors Warner is eyeing a purchase of Paramount.
The FCC’s draft 2018 quadrennial review order had just two votes as of Wednesday evening, which could mean it won’t win approval in time to meet the Dec. 27 deadline that the U.S. Court of Appeals for the D.C. Circuit set (see 2309290056), according to FCC and industry officials. The item hasn’t undergone many changes since it was circulated. It would extend prohibitions on new top-four combinations to multicast and low-power TV stations and maintain rules limiting local radio ownership.
Wireless technology companies, satellite operators and a host of broadcast industry entities pitching ATSC 3.0-based methods responded to the FCC Public Safety Bureau’s call for partners to test ways to deliver wireless emergency alerts without using cell towers, according to comments filed in docket 22-160 by Monday’s deadline. “In some cases, mobile networks can be disrupted by the very emergency to which a WEA pertains,” said NAB. “A successful partnership with the Bureau could further bolster the case for ATSC 3.0 abroad” and encourage manufacturers to include 3.0 chips in their phones, said Sinclair’s ATSC 3.0 subsidiary One Media. Qualcomm, Skylo Technologies, PBS, 5G broadcast company XGen and others suggested their own solutions.
Twenty-seven Senate and House Democrats in a letter Friday urged the FCC to reinstate the collection of broadcaster equal employment opportunity data, seconding a Dec. 11 call for urgent action from Commissioner Geoffrey Starks and Rep. Yvette Clarke, D-N.Y. (see 2312110067). Although broadcasters were anticipating an EEO item since a 2021 Further NPRM (see 2306020056) and Chairwoman Jessica Rosenworcel said one was in the works during the 2022 NAB Show (see 2204250067), it hasn’t materialized. “In 2021, after nearly 20 years, the FCC took the important step of soliciting comment on how to recommence this important data collection using Form 395-B,” said the lawmakers' letter. “It is now time for the Commission to follow through.”
FCC Commissioner Anna Gomez wants to focus on empowering and engaging with underserved consumers and combating media disinformation, she said Tuesday during the Congressional Hispanic Caucus Institute’s inaugural Celebrating Latina Excellence event. A news release from her office called it “her first major speech.” Gomez was sworn in Sept. 25. In a news conference after her remarks Tuesday, Gomez said that her most immediate policy goals for the FCC are implementing continued funding for the affordable connectivity program and spectrum auctions authorization, both of which would require congressional action before the agency could act. “I am a firm believer in the power of competition to drive innovation that improves services and lowers prices for consumers,” Gomez said. “But competition only works when the market works”
The Maine legislature’s joint Judiciary Committee is weighing whether a state consumer privacy law should allow a private right of action, exempt small businesses or limit allowed data collection to what is “strictly necessary,” according to a livestreamed work session Monday. Comments on possible provisions for privacy legislation are due Dec. 18, when the committee is expected to have updated draft language on dueling consumer privacy bills: LD-1977, which is similar to the proposed federal American Data Privacy and Protection Act, and LD-1973, which is based on Connecticut’s privacy statute.
An FCC draft report and order slated for commissioners' open meeting Wednesday creating a one-year window allowing certain low-power TV stations to convert to Class A status is expected to receive unanimous approval and perhaps an early vote, agency officials told us. The Class A window would open on the draft order’s effective date. The draft item has attracted little lobbying since it was announced last month, with the most recent filings in the docket (23-126) from June.