'Prometheus IV' Creates Uncertainty for Broadcasters, Gray Tells SCOTUS
The 3rd U.S. Circuit Court of Appeals’ repeated rejections of FCC changes to broadcast ownership rules (see 2004170065) have created uncertainty for broadcasters and prevent improvements to local news in small and medium markets, said Gray Television in an amicus…
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brief in dockets including 19-1231 at the Supreme Court Wednesday. Briefs from other broadcasters are expected later this week. Gray filed in support of the petitions for certiorari from the NAB and FCC seeking to have the 3rd Circuit’s Prometheus IV overturned. The 3rd Circuit effectively froze the duopoly rule “in its 1941 form” and, “significantly impeded further expansion and improvements in local news production,” the TV station owner said. The 3rd Circuit’s rollback of the FCC’s 2017 relaxations of broadcast ownership rules creates uncertainty about deals completed under those relaxed rules, Gray said. As long as the older rules are in place, “Gray’s ability to continue owning and operating these stations will be in doubt.” Numerous broadcast attorneys said it's unlikely and would be unusual for the FCC to seek to dissolve transactions years after approval and consummation, but Gray said Wednesday the risk makes investment in those stations and their news departments “more difficult and uncertain.” It's “imperative” that SCOTUS reverse the 3rd Circuit ruling, the company said.