An order approving Audacy’s request for a temporary exemption from the foreign-ownership rules was adopted but isn’t expected to be released before next week, FCC officials told us. The waiver would allow Audacy to complete foreign-ownership review after it finishes a bankruptcy restructuring that involves control of the broadcaster passing to a fund affiliated with George Soros' family. FCC Republicans hadn’t submitted dissenting statements Wednesday afternoon but indicated they plan to do so, the agency officials said. Broadcast industry officials, attorneys and others told us the Audacy transaction wouldn’t attract as much attention without Soros’ name attached, and that radio broadcasters have long sought increased private equity investment in their industry. “They’re making it a political ax,” said Christopher Terry, University of Minnesota media law professor. “The radio industry has been cash-strapped for 20 years.”
Legislators, broadcasters, cable groups, the Heritage Foundation and civil rights groups disagree on whether the FCC can or should require disclosures for political ads created with generative AI, according to comments filed in docket 24-211 by Thursday’s deadline.
The “must-vote” clock on radio group Audacy’s request for a temporary waiver of FCC foreign-ownership rules is set to expire Wednesday, and FCC officials told us they're expecting its approval, though at least one Republican will dissent on what in several past proceedings has been a routine request. Audacy, which owns more than 200 stations and is the second-largest radio group in the U.S., is seeking the waiver to allow it to first complete a bankruptcy restructuring that has George Soros-affiliated entities purchasing its stock. The FCC’s Democrats have already voted the item, agency officials told us.
The FCC’s June rules for foreign-sponsored content violate the Administrative Procedure Act because the agency didn’t provide notice of plans for expanding the 2021 rules to cover political ads and public service announcements, said NAB in a petition for review filed Monday with the U.S. Court of Appeals for the DC Circuit. The 2024 order was a response to a D.C. Circuit ruling in favor of an NAB-backed challenge to portions of the FCC's 2021 foreign-sponsored content rules. The FCC “did not even attempt to provide a rationale for changing course,” to go after PSAs and issue ads, NAB said in the filing, which echoes arguments Commissioners Nathan Simington and Brendan Carr raised in dissents back in May. “Adopting rule changes nobody could have reasonably anticipated is a textbook example of unfair surprise,” Carr wrote at the time.
After senators sent letters to all five FCC commissioners Friday calling for the agency to avoid “weaponization” of its licensing authority against broadcasters, Commissioner Nathan Simington responded, saying the FCC should renew the license of Fox station WTXF-TV Philadelphia over the opposition of public interest group the Media and Democracy Project (MAD). Letters from Sens. Ed Markey, D-Mass., and Ron Wyden, D-Ore., referenced recent comments from Republican presidential nominee Donald Trump against ABC (see 2409120056).
Attorneys, academics and First Amendment experts told us that Republican presidential candidate Donald Trump’s calls for ABC to lose its license over Tuesday's presidential debate telecast (see 2409110058) are nonsensical and that government action against a broadcaster would likely ultimately fail. In addition, some said presidential calls for action against broadcasters over their reporting aren’t unprecedented. “All political players tend to do this when it suits them,” said veteran First Amendment attorney Robert Corn-Revere, now chief counsel for the Foundation for Individual Rights and Expression. “None of them have the constitutional authority to back it up.”
In a dissent attached to a combined $3.6 million forfeiture against Sinclair Broadcast and others over kidvid violations, FCC Commissioner Nathan Simington has vowed he will dissent from monetary forfeitures until the agency “formally determines the bounds of its enforcement authority.” Simington's move comes in the wake of the recent U.S. Supreme Court decision SEC v. Jarkesy. The order was approved 3-2, with Commissioner Brendan Carr also dissenting. The forfeiture order was adopted Aug.14, but not released until Thursday. The FCC didn't immediately comment on the delay. “I call on the Commission to open a Notice of Inquiry to determine the new constitutional contours of Commission enforcement authority,” Simington wrote. “The statutory structure governing the FCC’s forfeiture power is quite different from that of the SEC,” the FCC said in a footnote in the order, arguing that the agency’s enforcement actions don’t violate the Seventh Amendment right to a jury trial as SCOTUS ruled the SEC’s do.
The FCC will vote this month on providing spectrum for satellite broadband and accessibility in videoconferencing, according to a note from Chairwoman Jessica Rosenworcel Wednesday. The Sept. 26 open meeting will also include items on expanding robocall protections and allowing increased power for digital FM stations, along with seven enforcement items, the note said. The agency typically doesn’t provide information about enforcement items on the agenda until those items have been voted on.
After more than a year of meetings, the NAB-led, FCC-involved ATSC 3.0 task force, the Future of TV Initiative, hasn’t reached consensus on controversial topics, we're told. Its members include broadcasters, cable interests, and consumer and public interest groups. Its first meeting was in June 2023, and it was expected to issue a final report in the fall, yet members told us that it's likely merely to reiterate many of the positions stakeholders held going into the effort. It's also unlikely to provide a firm timeline for the sunset of ATSC 1.0. Just before the initiative's launch, ATSC President Madeleine Noland said the goal was for the diverse group to “chart a path forward together,” and NAB told us the goal was to make concrete recommendations to the FCC by June 2024.
The FCC’s order on broadcasters' collection of workforce diversity data exceeds the agency’s authority, violates the First and Fifth Amendments, and runs afoul of the U.S. Supreme Court’s recent ruling ending judicial deference to regulatory agencies, said a brief from the National Religious Broadcasters, the American Family Association and the Texas Association of Broadcasters. The groups filed the brief Wednesday in the 5th U.S. Circuit Court of Appeals. The order’s requirement that broadcasters make their workforce diversity data available online is intended “to pressure broadcasters to engage in race- or sex-based hiring practices,” it said, concluding that the order “is fatally flawed in multiple respects and should be vacated.” The FCC didn’t comment.