WASHINGTON—In an important development in the battle over broadcast ownership regulations, the 8th U.S. Circuit Court of Appeals has vacated the Federal Communications Commission’s rules against a station group owning more than one of the top-four TV stations in audience share in a given market.
The St. Louis-based court also vacated an amendment to “Note 11” in the FCC rules that tightened how the top four stations are determined, but declined to undo rules governing radio stations and denied the petition for review of all other issues.
Under the Telecommunications Act of 1996, the FCC is required to review its broadcast ownership rules every four years and repeal or modify any that are no longer in the public interest. Following a December 2023 FCC order retaining existing regulations as part of its 2018 quadrennial review, the National Association of Broadcasters and a coalition of local broadcasters challenged the order, arguing that the FCC’s approach ignored the competitive pressures broadcasters face from digital platforms and failed to meet the statutory requirements for review.
The 8th Circuit ruling found that the FCC’s rationale for retaining the rules was “arbitrary and capricious,” “unsupported by the record” and relied on “outdated” or insufficient evidence. The court wrote that “in light of the evidence against the Top-Four Prohibition and in the absence of any record-supported reason for keeping the rule,” the Commission failed to justify its continued enforcement of that regulation.
The ruling comes at a time when broadcasters have been hopeful that the FCC might significantly revise or eliminate the ownership rules. FCC Chair Brendan Carr has vowed to eliminate rules that make it harder for broadcasters to fund local news and the agency has opened a docket calling for public comment on the rules.
In response to the ruling, Carr and the NAB applauded the decision.
“NAB is extremely pleased with the Eighth Circuit’s decision to vacate the previous FCC’s arbitrary and outdated top-four prohibition,” NAB president and CEO Curtis LeGeyt said. “This is a major step forward for local television broadcasters seeking to compete and thrive in a vastly transformed media marketplace.
“At the same time, we are disappointed that the court stopped short of addressing the decades-old radio ownership restrictions that defy economic reality and weaken broadcasters’ ability to compete, invest in local journalism and serve their communities,” he added. “Fortunately, FCC Chairman Brendan Carr has long been a champion for empowering local stations, and we look forward to working with this FCC to modernize its local radio ownership rules and ensure local broadcasters can thrive in the communities they serve across the nation.”
When Carr was a commissioner, he opposed the 2023 FCC Order.
In response to the 8th Circuit ruling, Carr said: “For decades, the FCC’s approach to regulating the broadcast industry has failed to promote the public interest. That has only made it harder for trusted and local sources of news and information to compete in today’s media environment. And that is why I dissented from the Biden-era FCC’s decision to retain a regulation that does not match marketplace realities. I am pleased to see that the court agrees and has vacated that regulation.”
The FCC has approved some recent transactions allowing broadcasters to own more than one top-four station. In July, Gray and Scripps also have entered into station swaps that would require a waiver of the rule.
The full ruling is available here.
