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Even more reaction to 3rd Circuit ruling

We have several more takes on the 3rd Circuit Court ruling on the FCC's 6/2/03 broadcast ownership rulemaking. The 3rd Circuit's opinion, in our opinion, wasn't so much a landmark as a giant speed bump. While it upheld many of the philosophical underpinning's of the FCC's action, it will certainly hold up the implementation of any of them while the Commission struggles with justifying its caps. For more commentary:

J. Stewart Bryan III, Chairman/CEO, Media General Inc.: "Media General is pleased that the Third Circuit Court of Appeals sustained the repeal of the Federal Communication Commission's 29-year-old rule against cross-ownership of newspapers and broadcast stations. It is not altogether surprising, however, that the Court has asked for a review of the Diversity

Index. The record already established by the FCC is very full and, we believe, warrants abolition of any cross-ownership restrictions on newspapers and television stations. It also obviates the need for any further fact-finding by the Commission. Our operating experience has proven that cross-ownership fosters the delivery of better, deeper and faster local news to the communities we serve. We hope the FCC and, in turn, the Third Circuit will move expeditiously to eliminate the cross-ownership ban in all markets. The newspaper and broadcast industries deserve the clarity and certainty needed to plan and invest for the future."

Sen. Ernest Hollings (D-SC), Ranking Member, Senate Commerce Committee: "Today's action by the Third Circuit is a stinging rebuke to Chairman Powell's efforts to abandon the public interest in favor of a result-driven, deregulatory ideology. Its decision confirms what Congress and people all over America have been saying for some time - - that the FCC to date has systematically ignored its obligation to ensure that diverse and antagonistic sources of news and information are available to citizens across America. I hope the Chairman finally hears the message and starts serving the American people rather than turning a deaf ear."

Jeff Chester, Executive Director, Center for Digital Democracy: "Today, the Court delivered a judgment that almost everyone but FCC Chair Michael Powell and his two GOP colleagues knew was coming: That the FCC decision on media ownership on June 2, 2003, was fatally flawed. Under Powell, the FCC embarked on a 'rush to judgment' that promoted dangerous deregulation of the nation's media ownership rules. The GOP majority was so convinced by its ideological perspectives that it failed to conduct public hearings (except one) and to engage in serious independent scholarship and analysis. To be honest, there is a striking and disturbing parallel between the Powell's FCC fixation that the nation's newspaper, broadcast, and network television was so diverse that ownership safeguards could be jettisoned, and the Administration's Iraq policy that also appears to have been shaped by preconception - - not facts. The review ordered today by the Court provides the country with a new opportunity to debate and review more seriously the policies that determine how the First Amendment should best serve the public and the press. This time, millions of Americans will be closely watching how the country's media lobbyists, including the four TV networks, and the Commissioners create an agenda that addresses this issue in a way our democracy deserves."

L. Brent Bozell, President/Founder, Parents Television Council: "It is clear that the FCC's heavy-handed attempt to allow a handful of media companies greater control over the public airwaves will not be the final word in the matter of local ownership. The courts, House and Senate leaders and concerned citizens across the country see big problems associated with changing media ownership rules. If the six large media conglomerates were allowed more control over the airwaves, community standards and local accountability would be swept away."

And this correction to yesterday's analysis (6/28/04 RBR Daily Epaper #125) by attorneys John Garaziglia and Greg Skall of Womble Carlyle Sandridge & Rice:

"In our memo regarding the 3rd Circuit ownership rules decision, we stated that the Court upheld TV JSAs as attributable interests. That is incorrect. The 3rd Circuit only upheld radio JSAs as attributable interests. The FCC intends to conduct a further rulemaking proceeding on TV JSAs and that issue was not considered by the Court."