Media Bureau Denies Mediacom’s Retransmission Consent Complaint
Mediacom and Sinclair should go to binding arbitration to resolve their carriage spat, the FCC Media Bureau said in an opinion and order denying Mediacom’s emergency retransmission-consent complaint. Mediacom accused Sinclair of bad-faith negotiations and alleged Sherman Act violations in U.S. Dist. Court, Des Moines (CD Oct 10 p5). Mediacom’s license to carry 22 Sinclair-owned or operated stations in its markets expires Fri. The Media Bureau sided with Sinclair at every turn in Mediacom’s complaint, but said if the companies came to terms harm to consumers would be averted. The FCC can’t mandate an arbitrated agreement but “strongly [encourages] them to submit to binding arbitration,” the Media Bureau said. The order has implications for the entire broadcast industry, said Sinclair Gen. Counsel Barry Faber.
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
The Media Bureau also denied a Mediacom request for full Commission consideration. Mediacom wanted the commissioners to vote because the matter raises legal questions beyond the bureau’s experience. Not so, the Bureau said: “We do not believe that Mediacom’s Complaint presents new or novel matters. The Media Bureau has previously addressed good faith retransmission consent complaints.” A quick bureau decision was in the public’s best interest, it said.
The Bureau opinion is “extremely helpful” to broadcasters at large, Faber said: “The more guidance that broadcasters receive in this area, the better.” The order recognizes that good faith negotiations don’t always result in agreements, he said: “It lays out that as long as you're negotiating, and not asking for some price that’s crazy… the fact that you don’t reach agreement doesn’t mean you negotiated in bad faith.”
Mediacom is running out of legal challenges to Sinclair’s alleged bad behavior. It dropped its appeal of a U.S. Dist. Court judge’s denial of its bid for a preliminary injunction against Sinclair pulling its stations’ signals while a broader antitrust case plays out. It could appeal the Media Bureau decision to the full Commission. Meanwhile, Mediacom shares have fallen about 7% since Jan. 1 after an analyst recommended investors sell the stock. Mediacom officials couldn’t be reached to comment.
The Bureau would require continued Mediacom carriage of Sinclair stations if the parties agreed to enter binding arbitration by the Bureau, it said. The companies also could take their cases to the American Arbitration Assn. But that would mean the FCC couldn’t mandate continued carriage, though it would “encourage” such an arrangement during arbitration.
Sinclair, which doesn’t expect to reach a deal before the Fri. deadline, may consider arbitration, Faber said. The companies are talking, but “it’s not communication I'd characterize as being likely to lead to the deal,” Faber said.