On June 2, 2003, the FCC revised its limits for broadcast ownership after completing the most extensive review since the 1996 Telecommunications Act required the FCC to examine its media ownership rules biennially. The FCC also had to consider two federal court decisions striking down some of its rules and requiring the FCC to do a better job of justifying any limits on media ownership.
As required by law, the FCC analyzed each of its six broadcast ownership rules to determine if they were “necessary in the public interest as the result of competition.” After analyzing the largest public record in the agency’s history, the FCC:
revised the local television multiple ownership rule;
modified the local radio ownership rule by revising the local radio market definition;
raised the national television ownership limit from 35% to 45%;
retained the dual network rule; and
developed a single set of cross-media limits to replace both the radio/television cross-ownership rule and the newspaper/broadcast cross-ownership rule.
The new rules have not been implemented yet. Multiple parties appealed the June 2 decision in various federal appellate courts. These cases were consolidated and assigned by lottery to the U.S. Court of Appeals for the Third Circuit, which stayed the effective date of the new rules pending its decision.
The June 2 decision was the culmination of a 20-month review process that began in 2001, when FCC Chairman Powell created the Media Ownership Working Group (MOWG) and charged it with developing a solid factual foundation for re-evaluating FCC media ownership policies. The studies performed by the MOWG were the first step in developing a sound empirical basis for FCC media ownership policies that promote competition, diversity and localism in today's media market.
