Howard Stirk Holdings LLC v. Fed. Commc’ns Comm’n

Section 202(h) of the 1996 Telecommunications Act, 110 Stat. 56, requires the Federal Communications Commission to periodically examine its broadcast ownership rules to limit consolidation in the industry. After the Third Circuit reviewed the Commission’s 2002 and 2006 reviews of its ownership rules, “the process broke down.” The 2010 and 2014 reviews are not complete. In 2016, the Third Circuit held that the Commission has unreasonably delayed action on its definition of an “eligible entity,” a term it has attempted to use as a lynchpin for initiatives to promote minority and female broadcast ownership, and ordered mediation. The court speculated that it might be necessary to invalidate FCC rules in the future if the Commission does not act quickly to carry out its legislative mandate. The court vacated a rule based on Commission’s 2014 determination that parties were evading its limits on the number of television stations that an entity can own through the influence exerted by advertising contracts known as joint sales agreements. The rule was procedurally invalid because it was adopted even though the Quadrennial Review cycle was severely backlogged. View "Howard Stirk Holdings LLC v. Fed. Commc'ns Comm'n" on Justia Law