WASHINGTON—The group of broadcasters that were fined by the FCC for failure to negotiate retransmission consent in good faith—the first instance of a fine being levied on that basis—continue to fight the historic charge.

In September, the FCC voted to deny an appeal that eight station groups failed to negotiate in good faith on retransmission consent with AT&T. The fine covered 18 stations in total, with each charged more than $500,000, bringing the total fine to more than $10 million.

Now, the station groups have jointly filed a response to the FCC, claiming that the commission erred in its decision and cannot impose the fines.

The station groups consist of Deerfield Media, GoCom Media, Howard Stirk Holdings, HSH, Mercury Broadcasting, MPS Media, KMTR Television, Second Generation of Iowa and Watt Broadcasting. One of the groups’ main arguments is that AT&T attempted to make the process of joint negotiations with these stations, which they point out is allowed by the FCC, prohibitively difficult and that ultimately led to the crux of AT&T’s arguments for why the groups had failed to negotiate in good faith.

“AT&T has attempted for years to persuade the commission to prohibit joint negotiations, but those efforts have been unsuccessful,” the comments read. “So when defendants sought in 2019 to jointly negotiate renewals of the 2016 agreements, AT&T tried to stymie their efforts.”

For its part, AT&T pointed out in its original complaint that all the stations involved were "managed and controlled by Sinclair Broadcast Group through some type of shared services agreement." In December 2019, the FCC's Media Bureau found that the stations had failed to negotiate in good faith with DirecTV and U-Verse (AT&T). The FCC said in granting the complaint that the stations had unreasonably delayed negotiations, including by not responding to AT&T proposals.

The station groups’ joint comments also address the severity of the fines, saying that the more than $500,000 fine for each station is “grossly excessive” and should instead be reduced to $25,000 per station. In an individual filing, Mercury Broadcasting argued for this reduction since it only owns a single station involved in these negotiations and has “demonstrated inability to pay and history of past compliance.”

The FCC says that it originally fined the stations the $10 million total amount because of the harm that each station going dark had on viewers.

The maximum fines had bipartisan support among the FCC commissioners, with Michael O’Rielly and Geoffrey Starks both voicing their support.

WASHINGTON—Having to pay $48 million to reconcile with three FCC investigations is an instance of Sinclair Broadcast Group getting off easy, according to Common Cause, especially as the broadcaster has been a repeat offender, the nonpartisan watchdog organization says.

The FCC fined, and Sinclair has agreed to pay, $48 million in civil penalties after a year-long investigation into Sinclair’s disclosure of information regarding its proposed acquisition of Tribune Media, as well as relating to two other investigations of if it negotiated retransmission agreements in good faith and failing to identify the sponsor of content supplied to both Sinclair and non-Sinclair TV stations.

“We commend the FCC for taking enforcement action against Sinclair,” said Michael Copps, Common Cause special adviser and former FCC commissioner, in a statement. “But the penalty amounts to a slap on the wrist for a conglomerate that has a history of bending the FCC’s rules and pursuing acquisition strategies that make a mockery of the broadcast ownership limits. Misrepresentation and lack of candor are serious allegations for any broadcaster let alone one that has continued to push the constraints of ownership structures placed by the commission. … The airwaves belong to the public and must reflect the diversity of voices in our democracy.”

Coops called the consent decree insufficient, suggesting that the cases that Sinclair was facing warranted debate on whether it should be able to keep its license. But, Coops argues, the decision by the FCC should not eliminate the FCC from reviewing Sinclair’s license when it comes up for review.

“The public should have full opportunity to weigh in on these renewal applications, and the commission must keep a watchful eye that Sinclair does not violate any of its rules,” Copps added.

Copps’ full statement is available online. 

WASHINGTON– The Federal Communications Commission said it has proposed to fine a New York City resident for apparently operating a radio transmitter on frequencies that the commission has licensed to the New York Police Department, causing interference with the NYPD’s radio system. The individual, Jay Peralta, faces a proposed fine of $404,166 for this egregious conduct.

Peralta allegedly transmitted threatening messages directed at NYPD officers. These messages included false bomb threats and false officer-in-distress calls to NYPD dispatchers. The Commission takes very seriously the unauthorized use of the radio systems used by first responders, as it can cause interference and may significantly harm the public by impairing the ability of legitimate users to communicate.

Today’s Notice of Apparent Liability for Forfeiture is a result of an investigation that began in August 2016 when a commission employee observed a Twitter post about an unlawful intrusion on the NYPD’s radio system. The NYPD provided the FCC with a written statement by Peralta, who is currently in police custody for related charges, in which he apparently acknowledged making nine unauthorized transmissions on the NYPD’s radio system.

The proposed fine details the commission’s allegations of unlawful conduct and proposes the maximum monetary penalty permitted under the law. As with any proposed fine, Peralta has 30 days to respond to this notice. According to his statement to the NYPD, on at least one occasion, Peralta apparently made unauthorized transmissions on the NYPD’s radio system in order to distract officers while his accomplices allegedly committed a robbery.

The FCC is tasked with overseeing use of the nation’s radio frequency spectrum and issues licenses under which entities such as broadcasters, public safety agencies, and wireless phone and data networks operate. The NYPD is a licensed user of multiple radio frequencies in the New York City area.

FCC Chairman Ajit Pai, Commissioners Mignon Clyburn and Michael O’Rielly approved the NAL. Pai released a separate statement on the action:

“Today, the FCC makes it abundantly clear that it will not tolerate unauthorized and illegal use of the radio spectrum. This may not be a typical pirate radio case in which an unauthorized operator inflicts damage on a radio broadcaster that is operating with a valid FCC license, but it does involve unauthorized interference to critical public safety communications systems.

“Jay Peralta deliberately disregarded the cCommission’s rules and the safety and security of New York City Police Department officers and the general public when he operated a radio on frequencies licensed to the NYPD without FCC authorization. Mr. Peralta’s nine unauthorized and interfering transmissions involved false bomb threats, false claims of criminal activities involving firearms, false distress calls from purported NYPD officers, and threats against NYPD officers. These transmissions were malicious and egregious actions that could have caused substantial and widespread harm.

“For as long as the FCC has existed, the agency has had the important mission of preventing radio interference. And within the realm of public safety, the FCC has no higher purpose than promoting secure and reliable public safety and emergency response communications. The commission must continue to discharge these critical duties—and vigorous prosecution of the fight against unauthorized operators is an important way to do so.

“I am grateful to my fellow commissioners for agreeing to act swiftly and strongly in this serious matter.”