The Senate has dealt a blow to the Federal Communications Commission and the Bush administration by voting against new ownership rules that would have given large media companies more influence in the US market.
On Tuesday, senators approved a resolution to overturn the regulations by 55 votes to 40. This follows the intervention of a Philadelphia appeals court which has already forced a delay in their implementation (see
Court Delays New FCC Ownership Rules).
FCC Chairman Michael Powell said yesterday that the Senate vote “would only muddy the media regulatory waters” and result in chaos. However, there is widespread dissatisfaction with the Commission’s proposals which will allow companies to own up to three television stations, eight radio stations and a cable operator in any one market. Broadcast networks will also be permitted to own stations that reach 45% of the nation’s viewers, up from 35% (see FCC Relaxes US Media Ownership Rules As Expected).
The fear is that too much power will be concentrated in the hands of too few, stifling both diversity and competition and reducing coverage of local issues (see US Congress Stands Up To FCC Over Media Ownership). This cuts little ice with the Republican-dominated FCC which believes that restrictions need to be relaxed to encourage growth and reflect changes in the media marketplace.
George Bush had threatened to veto the resolution if it was passed and Congress would need a two-thirds majority to override the President. Even if this is not forthcoming, the level of opposition to the law changes may induce the administration to tone down some of the FCC’s more controversial proposals.
