WASHINGTON—A coalition of groups who have opposed the $6.2 billion Nexstar/Tegna merger have filed an emergency petition and appeal with the Federal Communications Commission seeking to stay what they call “the agency’s unlawful March 19 decision” to approve the deal.
“To say that the merger will ‘adversely affect’ petitioners would be a massive understatement,” according to the filing, which was signed by associations representing pay TV companies, unions, public interest groups and groups representing broadband providers. “Everyone (including the applicants themselves) agrees that the new company will exert its newfound leverage to demand ever-higher fees ... which, in turn, will translate into higher prices for millions of subscribers. And the merger will further harm the public interest with imminent cuts to journalists and other workers employed by these stations across the country, and decreased competition and viewpoint diversity in news these stations produce.”
The emergency petition and application for review of the FCC order calls on the agency to stay its Nexstar decision pending a ruling on the application. The groups assert that the FCC’s Media Bureau issued its Nexstar decision without holding a hearing, “which is the absolute least it should have done given the multiple ‘substantial and material questions’ about whether this merger serves ‘the public interest,’” according to the petition.
Article continues belowPetitioners include Free Press, the Broadband Communications Association of Pennsylvania, the Broadband Communications Associations of Washington, DirecTV, Echostar Corporation, the Indiana Cable and Broadband Association, Mississippi Internet and Television, Newsmax Media, NABET — Communications Workers of America, Public Knowledge, the Tennessee Cable and Broadband Association, United Church of Christ Media Justice Ministry, and VCTA — Broadband Association of Virginia.
The deal also faces opposition in the courts, where eight states and DirecTV have filed lawsuits trying to block it for allegedly violating antitrust laws.
Nexstar controls more than 200 owned or partner television stations in 116 local U.S. markets. The combined entity would have 265 full-power television stations in 44 states and the District of Columbia, present in 132 of the country’s 210 television Designated Market Areas.
In a statement, Free Press vice president of policy and general counsel Matt Wood said that “the FCC’s unprecedented moves to grease the skids for this terrible merger are something we simply can’t let stand. Giant media conglomerates like Nexstar are bad for democracy writ large, and particularly harmful to the local communities these broadcasters are obligated to serve. That’s why Congress established a 39 percent national audience cap — to prevent one national company from controlling far too much publicly owned spectrum in cities and towns across America.”
“The FCC decision to green light this terrible deal would usher in an unprecedented concentration of the broadcast television market,” he added. “The new Nexstar would have vast power to raise costs for pay-TV distributors and their customers — even extorting higher fees from consumers when demand for access to news, information and entertainment content — like the NFL playoffs, NCAA Final Four, and election-related local news — is at its highest.”
More reaction to the deal, which was praised by the NAB and criticized by FCC Commissioner Anna Gomez, the agency’s lone Democrat, can be found here.
The petition is available here and the appeal hear.
