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Court Delays New FCC Ownership Rules

Court Delays New FCC Ownership Rules

A US federal court yesterday moved to block controversial new media ownership rules put forward by the Federal Commissions Commission (FCC).

Under current rules, media firms are allowed to reach up to 35% of the national television audience through local TV station ownership. In June, the FCC’s commissioners voted 3-2 in favour of raising the cap to 45% and also gave companies the green light to own both newspapers and broadcasters in the same area (see FCC Relaxes US Media Ownership Rules As Expected).

These rulings sparked off a wave of criticism with media observers arguing that the proposals will concentrate too much power in the hands of major corporations. Congress is also known to oppose the Republican administration’s attempts to liberalise media ownership laws (see Congress Torpedoes Media Ownership Legislation).

The new rules were due to come into effect today but a three-man appeals court in Philadelphia has granted a stay order preventing their introduction until a judicial review is complete. This is likely to take several months and is a blow to the FCC, the George Bush government and large media companies who had pressed for the change.

FCC spokesman David Fiske remained defiant, commenting: “While we are disappointed by the decision by the court to stay the new rules, we will continue to vigorously defend tham and look forward to a decision by the court on the merits.”

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