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Senate Votes to Overturn FCC's Media Ownership Rule

'Resolution of disapproval' would block greater consolidation of media outlets

By Martin H. Bosworth
ConsumerAffairs.Com

May 16, 2007 
The Senate voted last night to adopt a "resolution of disapproval" of the Federal Communications Commission's (FCC) recently passed rule enabling large media companies to own broadcast television stations and newspapers in the same market.

The resolution, passed by a large margin on a voice vote, was introduced by Sen. Byron Dorgan (D-ND), who had previously introduced legislation to slow down adoption of the new rules until studies could be performed measuring their effects on media markets.

Sen. Maria Cantwell (D-WA), who cosponsored Dorgan's initial legislation, spoke strongly in support of the resolution, saying that protecting local ownership of media promoted diversity, competition, and greater access to valuable information.

Cantwell criticized FCC chairman Kevin Martin for claiming that "these new media consolidation rules are needed because of the competitive threat posed to the newspaper industry by the Internet. But that argument just doesn't hold water."

"While Chairman Martin likes to speak about allowing public comment over 120 days and six hearings around the country, all of this was done BEFORE the announcement of what rules would actually change. And he ignored the public testimony anyway," Cantwell said.

Martin has been frequently criticized for his policies by both the Senate and the House of Representatives, and the House Energy and Commerce Committee recently notified Martin that it would be investigating him and the commission over recent rulemakings and legislative decisions.

The House has similar legislation pending that would nullify the FCC's new media cross-ownership rule. The Bush administration released a statement opposing the resolution of disapproval, and promising to veto any legislation restricting the rules if it came to his desk.

"The FCC rule, which is the product of years of study and extensive public comment and consultation, modestly and judiciously modernizes decades-old media ownership regulations that highly restrict cross-ownership of newspapers and broadcast stations," the White House said. "The new rule more accurately reflects this changing media landscape by taking into account the abundance of news and information outlets that exist today, and furthers the public interest by providing greater financial flexibility to newspaper and broadcast outlets struggling to survive in today's intensely competitive media environment."

Activist groups such as Free Press criticized the Bush Administration for supporting policy that was based on, in their words, "flawed research, biased research, and research that was from the start guided by foregone conclusions."

"New technologies have had a limited impact on local news," the organization said. The vast majority of people still get their local news from traditional broadcast outlets (or go to the Web sites of those traditional broadcast outlets. Newspaper profits have been declining, but they are still making boatloads of money and their profits are better than many Fortune 500 companies."

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