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FCC relaxes media ownership rules

The U.S. Federal Communications Commission voted 3 to 2 for media ownership rule changes that include virtually lifting the three decades-old restrictions on cross-ownership of media in the same metropolitan area and allowing national television networks to own more local stations.

The vote by the five-member FCC was strictly along party lines: the Republican majority led by FCC Chairman Michael K. Powell versus the two Democrats on the commission, Michael Copps and Jonathan Adelstein.

Under the new FCC rules, which are expected to be challenged in court, newspaper companies are no longer banned from owning a newspaper and television and radio stations in the same city.

Major networks will be allowed to own local television stations that reach 45 percent of the national audience instead of the current 35 percent limit. In major markets, one company would be allowed to own three television stations instead of two.

The Republicans claimed the rule changes were necessary to respond to new technology that has greatly expanded television in particular.

Opponents and neutral analysts said the rule changes will undoubtedly prompt even greater consolidation of media ownership among the largest television, newspaper, and radio companies. The Washington Post reported that such newspaper chains as the Tribune Co., New York Times Co., and Gannett are looking to expand their television and radio holdings.

The ruling also was seen as benefitting other major trans-media companies, most of which also own television and radio stations. These include: the Walt Disney Co., which owns ABC, ESPN, Disney cable channels, and Disney and Touchstone studios; Rupert Murdoch's News Corp., which owns the Fox network, Fox News and FX cable channels and 20th Century Fox studio; Viacom Inc., which owns CBS and UPN networks, MTV and Nickelodeon cable channels and Paramount studios; General Electric, which owns NBC and Telemundo networks and MSNBC, CNBC and Bravo cable channels; and AOL Time Warner, which owns the WB network, Turner Broadcasting cable channels, and Warner Bros. and New Line studios.

The FCC upheld the rule that prohibits major television networks from buying another network. The commission also tightened ownership regulations governing local radio stations – an area of intense consolidation following the lifting of national radio ownership rules by Congress in 1996.

Opponents of the rule included groups from the left, middle and right of the American political spectrum, who voiced concerns that increased concentration of media ownership will stifle national political and social debate on issues and reduce national and local news coverage of important issues. Opponents also fear reduced diversity in media ownership, which led the Black, Hispanic and Asian Pacific American caucuses in Congress to oppose the FCC's actions.

AFL-CIO Pres. John J. Sweeney said the FCC's "decision to substantially eradicate safeguards on media ownership does our democracy irreparable harm and puts giant corporate interests head and shoulders above those of average working people."

Sweeney said the FCC's "deregulation of media ownership on this unprecedented scale deeply threatens the public's first amendment right to what the Supreme Court has described as the 'uninhibited marketplace of ideas.' In our democratic society, media ownership matters. It matters because ultimately it is the deciding factor that determines what America's working families are able to consume in news, entertainment, and information. It matters to our democracy because an informed public is the bedrock of our free and open society."

Despite a storm of more than 500,000 postcards and e-mails in favor of retaining the media ownership rules, FCC commissioners evidently relied heavily on more than 70 private meetings with telecommunications and broadcast officials and lobbyists in reaching its decision, according to studies by the Center for Public Integrity.

In contrast, the AFL-CIO noted, FCC Chairman Powell refused to extend the public review period for the proposals, saying that a single hearing in Richmond, Va., in February was sufficient.

Ted Turner, whose media companies are now owned by AOL Time Warner, said the rule changes "will stifle debate, inhibit new ideas, and shut out smaller businesses trying to compete. If these rules had been in place in 1970, it would have been virtually impossible for me to start Turner Broadcasting or, 10 years later, to launch CNN."

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