The White House and the US congress have reached a compromise in their dispute over new media ownership laws after the row threatened to scupper a major spending bill.
Both parties have agreed to a 39% cap on the proportion of the national television audience that a single network can reach.
The Republican-led Federal Communications Commission (FCC) had voted for the limit to be raised from 35%, as it is currently, to 45% (see FCC Relaxes US Media Ownership Rules As Expected). However, the decision met with opposition from politicians and consumer groups concerned that too much power would be concentrated in the hands of large media owners.
In September, the Senate voted in favour of a motion to overturn the regulations (see FCC Rule Changes Shot Down By Senate). President Bush’s administration subsequently threatened to veto the resolution, a move that would have jeopardized a $330 billion spending package funding government agencies next year.
The deadlock was resolved when Congressional Republican leaders met Bush administration officials and agreed that the ownership limit should be raised to 39%. The compromise also makes the cap permanent and removes it from the FCC’s jurisdiction.
The move will come as a relief to the likes of Viacom and News Corporation, who had already made acquisitions extending their national reach beyond 35%. However, Democratic leaders have already decried what they see as a climb down in the face of White House pressure.
The House is expected to vote on the revised bill on 8 December, after which it will pass to the Senate.
