Appeals Court slaps down FCC restrictions on station cross-ownership

WASHINGTON (AP) _ A federal appeals court on Tuesday rejected the government's rule limiting the number of television stations a company can own in a single market. <br><br>The court also struck down

Tuesday, February 19th 2002, 12:00 am

By: News On 6

WASHINGTON (AP) _ A federal appeals court on Tuesday rejected the government's rule limiting the number of television stations a company can own in a single market.

The court also struck down a Federal Communications Commission rule that prohibits cable stations from carrying signals of broadcast stations in the same market.

``We conclude that the commission's decision to retain the rules was arbitrary and capricious and contrary to law,'' wrote Chief Judge Douglas H. Ginsburg.

The three-judge panel sent the television station ownership rule back to the FCC ``for further consideration,'' and vacated the cable broadcast rule ``because we think it unlikely the commission will be able on remand to justify retaining it.''

The plaintiffs _ Fox Television Stations, Inc.; National Broadcasting Company, Inc.; Viacom Inc., and CBS Broadcasting Inc. _ challenged the FCC's decision to retain a rule that prohibits any entity from controlling television stations that together can reach more than 35 percent of U.S. households.

``We have long believed that the national broadcast ownership cap is outdated and no longer serves the public interest. We are pleased the court agreed with our view, and now look forward to a speedy resolution of this issue from the FCC,'' said Andrew Butcher, vice president for corporate affairs and communications for News Corp., Fox's parent company.

Time Warner Entertainment Co., L.P., challenged the cable broadcast rule.

The FCC did not immediately return a call for comment. During its biennial policy review, the agency said it retained the ownership rule to study the effect of the 35 percent cap on station ownership and to preserve the power of affiliates in bargaining with their networks, according to the brief.

A supporter of the FCC rule called the decision an ``astounding judicial intrusion'' into the agency's powers and said it was likely to wind up before the Supreme Court.

``The Court of Appeals continues its Sherman's march through the FCC rulebook, squashing congressional powers and the public's First Amendment access rights along the way,'' said Andrew Jay Schwartzman, an attorney who filed a brief on behalf of the Consumer Federation of America.

``It says anybody who doesn't like any rule in the entire FCC rulebook can go to court every two years without having to go through a rulemaking'' proceeding, he added. ``It leaves the FCC with no control over its docket.''