Senate Commerce Passes Ownership Disapproval Resolution

“My hope is the House and Senate will decide this is a rule we should veto,” said Dorgan, who criticized FCC Chairman Kevin Martin for the rule allowing broadcasters in the top 20 markets to combine with newspapers under certain conditions (CD Dec 19 p1). Shortly before the FCC action, the Senate Commerce Committee passed a Dorgan-sponsored bill (S-2332) to require the FCC to postpone its decision. It has 24 co-sponsors.

Martin cited concern over newspapers’ economic health in discussing the rule change with the committee. Dorgan didn’t agree, calling newspaper profit margins generally healthy. “Kevin Martin is now going off on the cross-ownership rule because he’s worried about the economic health of newspapers,” Dorgan said. “There’s nothing in his job that says he’s the newspaper referee in America.”

Martin defended his stance to reporters at a briefing later in the day. The media ownership rules must be modified “to reflect the changes in the marketplace,” he said. “I was clear about that when I testified to Congress.” Martin added that the FCC is “always sensitive to Congress’ concerns” about the agency’s actions. But it was Congress that required the FCC to periodically review media ownership rules.

“The rules promoting the public interest are too important for the FCC to accept an agenda supported by the Washington special interests,” said a statement by Sen. Barack Obama, D-Ill. He and Sen. John Kerry, D-Mass., asked last year that Martin delay the vote. They are among a bipartisan Senate group wanting to revoke the agency vote via legislative procedures.

Public interest groups hailed the committee action. “Media consolidation in markets that lack strong competition should not be permitted,” said Gene Kimmelman, Consumers Union vice president, federal policy. Careful implementation of the rules “should prevent the most dangerous mergers, including News Corp.’s efforts to acquire Newsday,” Kimmelman said.

Rupert Murdoch is poised to challenge the new rule in seeking waivers to control two newspapers and two TV stations in New York, the nation’s largest market. “If the commission allows Murdoch or any one owner to control two television stations and three newspapers in the same market, it would prove the ownership rule is meaningless,” said ACLU Washington Legislative Office Director Caroline Frederickson. Existing consolidation “hinders vigorous public debate,” she said.

If approved and signed by the president, the resolution would stop the FCC from enforcing its order. Dorgan worries about Murdoch’s expansions, he said, calling them another example of consolidation “which I think is unhealthy.” He did not give a time frame on when he would call up the resolution, but said he plans consultations soon with Senate leadership.

The committee also unanimously passed two bills to help broadcasters with the digital transition. The “border fix” act (S-2507) would let TV stations within 50 miles of the U.S.-Mexico border broadcast in analog for as long as five years after the Feb. 17, 2009, transition, if deemed in the public interest. A second bill (S-2607) would advance funding for low-power stations’ digital upgrades. The money wouldn’t be available until 2010 under current law.

“The major concern is that residents who continue watching stations from Mexico rather than taking steps to prepare for the transition may not receive AMBER Alert and Emergency Alert System messages,” said Sen. Kay Bailey Hutchison, R-Texas, who sponsored S-2507, which has two co- sponsors. A similar bill (HR-5435) is pending before the House Telecom Subcommittee.