Federal Communications Commission v. Midwest Video Corp.

440 U.S. 689, 99 S. Ct. 1435, 59 L. Ed. 2d 692, 1979 U.S. LEXIS 82, 4 Media L. Rep. (BNA) 2345, 45 Rad. Reg. 2d (P & F) 581
Supreme Court of the United States·Decided April 2, 1979·No. 77-1575·Published·Cited by 148 cases

Opinions

Mr. Justice White

delivered the opinion of the Court.

In May 1976, the Federal Communications Commission promulgated rules requiring cable television systems that have 3,500 or more subscribers and carry broadcast signals to develop, at a minimum, a 20-channel capacity by 1986, to make available certain channels for access by third parties, and to furnish equipment and facilities for access purposes. Report and Order in Docket No. 20508, 59 F. C. C. 2d 294 (1976 Order). The issue here is whether these rules are “reasonably ancillary to the effective performance of the Commission's various responsibilities for the regulation of television broadcasting,” United States v. Southwestern Cable Co., 392 U. S. 157, 178 (1968), and hence within the Commission’s statutory authority.

I

The regulations now under review had their genesis in rules prescribed by the Commission in 1972 requiring all cable operators in the top 100 television markets to design their systems to include at least 20 channels and to dedicate 4 of those channels for public, governmental, educational, and leased access. The rules were reassessed in the course of further rulemaking proceedings. As a result, the Commission modified a compliance deadline, Report and Order in Docket No. 20363, 54 F. C. C. 2d 207 (1975), effected certain substantive changes, and extended the rules to all cable systems having 3,500 or more subscribers, 1976' Order, supra. In its [692]*6921976 Order, the Commission reaffirmed its view that there was “a definite societal good” in preserving access channels, though it acknowledged that the “overall impact that use of these channels can have may have been exaggerated in the past.” 59 F. C. C. 2d, at 296.

As ultimately adopted, the rules prescribe a series of interrelated obligations ensuring public access to cable systems of a designated size and regulate the manner in which access is to be afforded and the charges that may be levied for providing it. Under the rules, cable systems must possess a minimum capacity of 20 channels as well as the technical capability for accomplishing two-way, nonvoice communication.1 47 CFR § 76.252 (1977). Moreover, to the extent of their available activated channel capacity,2 cable systems must allocate four [693]*693separate channels for use by public, educational, local governmental, and leased-access users, with one channel assigned to each. § 76.254 (a). Absent demand for full-time use of each access channel, the combined demand can be accommodated with fewer than four channels but with at least one. §§ 76.254 (b), (e).3 When demand on a particular access channel exceeds a specified limit, the cable system must provide another access channel for the same purpose, to the extent of the system’s activated capacity. § 76.254 (d). The rules also require cable systems to make equipment available for those utilizing public-access channels. § 76.256 (a).

Under the rules, cable operators are deprived of all discretion regarding who may exploit their access channels and what may be transmitted over such channels. System operators are specifically enjoined from exercising any control over the content of access programming except that they must adopt rules proscribing the transmission on most access channels of lottery information and commercial matter.4 §§ 76.256 [694]*694(b), (d). The regulations also instruct cable operators to issue rules providing for first-come, nondiscriminatory access on public and leased channels. §§ 76.256 (d)(1), (3).

Finally, the rules circumscribe what operators may charge for privileges of access and use of facilities and equipment. No charge may be assessed for the use of one public-access channel. § 76.256 (c) (2). Operators may not charge for the use of educational and governmental access for the first five years the system services such users. § 76.256 (c)(1). Leased-access-channel users must be charged an “appropriate” fee. § 76.256 (d)(3). Moreover, the rules admonish that charges for equipment, personnel, and production exacted from access users “shall be reasonable and consistent with the goal of affording users a low-cost means of television access.” § 76.256

(c)(3). And “[n]o charges shall be made for live public access programs not exceeding five minutes in length.” Ibid. Lastly, a system may not charge access users for utilization of its playback equipment or the personnel required to operate such equipment when the cable’s production equipment is not deployed and when tapes or film can be played without technical alteration to the system’s equipment. Petition for Reconsideration in Docket No. 20508, 62 F. C. C. 2d 399, 407 (1976).

The Commission’s capacity and access rules were challenged on jurisdictional grounds in the course of the rulemaking proceedings. In its 1976 Order, the Commission rejected such comments on the ground that the regulations furthered objectives that it might properly pursue in its supervision over broadcasting. Specifically, the Commission maintained that its rules would promote “the achievement of long-standing communications regulatory objectives by increasing outlets for [695]*695local self-expression and augmenting the public’s choice of programs.” 59 F. C. C. 2d, at 298. The Commission did not find persuasive the contention that “the access requirements are in effect common carrier obligations which are beyond our authority to impose.” Id., at 299. The explanation was:

“So long as the rules adopted are reasonably related to achieving objectives for which the Commission has been assigned jurisdiction we do not think they can be held beyond our authority merely by denominating them as somehow ‘common carrier’ in nature. The proper question, we believe, is not whether they fall in one category or another of regulation — whether they are more akin to obligations imposed on common carriers or obligations imposed on broadcasters to operate in the public interest— but whether the rules adopted promote statutory objectives.” Ibid.

Additionally, the Commission denied that the rules violated the First Amendment, reasoning that when broadcasting or related activity by cable systems is involved First Amendment values are served by measures facilitating an exchange of ideas.

On petition for review, the Eighth Circuit set aside the Commission’s access, channel capacity, and facilities rules as beyond the agency’s jurisdiction. 571 F. 2d 1025 (1978). The court was of the view that the regulations were not reasonably ancillary to the Commission’s jurisdiction over broadcasting, a jurisdictional condition established by past decisions of this Court. The rules amounted to an attempt to impose common-carrier obligations on cable operators, the court said, and thus ran counter to the statutory command that broadcasters themselves may not be treated as common carriers. See Communications Act of 1934, § 3 (h), 47 U. S. C. § 153 (h). Furthermore, the court made plain its belief that the regulations presented grave First Amend[696]*696ment problems.

Free access — add to your briefcase to read the full text and ask questions with AI

Federal Communications Commission v. Midwest Video Corp., 440 U.S. 689, 99 S. Ct. 1435, 59 L. Ed. 2d 692, 1979 U.S. LEXIS 82, 4 Media L. Rep. (BNA) 2345, 45 Rad. Reg. 2d (P & F) 581 (1979).

440 U.S. 689 (Federal Communications Commission v. Midwest Video Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

NetChoice v. Paxton
49 F.4th 439 (Fifth Circuit, 2022)
NetChoice, LLC v. Attorney General, State of Florida
34 F.4th 1196 (Eleventh Circuit, 2022)
FTC v. At&t Mobility LLC
883 F.3d 848 (Ninth Circuit, 2018)
J.T. Vanvoorhis and S.L. Fox v. Shrewsbury Twp.
176 A.3d 429 (Commonwealth Court of Pennsylvania, 2017)
DISH Network Corp. v. FCC
653 F.3d 771 (Ninth Circuit, 2011)
Crumley v. Time Warner Cable, Inc.
554 F. Supp. 2d 933 (D. Minnesota, 2008)
At&T Communications of Maryland, Inc. v. Comptroller of the Treasury
932 A.2d 748 (Court of Special Appeals of Maryland, 2007)
Federal Trade Commission v. Verity International, Ltd.
194 F. Supp. 2d 270 (S.D. New York, 2002)
Destek v. Verizon, et al.
2001 DNH 140 (D. New Hampshire, 2001)
At & T CORP. v. City of Portland
43 F. Supp. 2d 1146 (D. Oregon, 1999)
Time Warner Cable v. City of New York
943 F. Supp. 1357 (S.D. New York, 1996)
Southwestern Bell Telephone Company v. Federal Communications Commission and United States of America, Eds Corporation, Ameritech Operating Companies, Metropolitan Fiber Systems, Pacific Bell and Nevada Bell, Wiltel, Inc., Bell Atlantic Telephone Companies, Nynex, MCI Telecommunications Corporation, Intervenors. Southwestern Bell Telephone Company v. Federal Communications Commission and United States of America, Eds Corporation, Metropolitan Fiber Systems, Pacific Bell and Nevada Bell, Wiltel, Inc., Bell Atlantic Telephone Companies, Nynex, MCI Telecommunications Corporation, Intervenors. U S West Communications, Inc. v. Federal Communications Commission and United States of America, Bell Atlantic Telephone Companies, Nynex, Ameritech Operating Companies, Southwestern Bell Telephone Company, Wiltel, Inc., Pacific Bell and Nevada Bell, MCI Telecommunications Corporation, Metropolitan Fiber Systems, Inc., Intervenors. (Two Cases) Southern Bell Telephone and Telegraph Company and South Central Bell Telephone Company v. Federal Communications Commission and United States of America, Nynex, Ameritech Operating Companies, Southwestern Bell Telephone Company, Wiltel, Inc., MCI Telecommunications Corporation, Pacific Bell and Nevada Bell, Metropolitan Fiber Systems, Inc., Bell Atlantic Operating Companies, Intervenors. (Two Cases) the Bell Atlantic Telephone Companies v. Federal Communications Commission and United States of America, Nynex, Ameritech Operating Companies, Southwestern Bell Telephone Company, Wiltel, Inc., MCI Telecommunications Corporation, Pacific Bell and Nevada Bell, Metropolitan Fiber Systems, Inc., Intervenors. (Two Cases) U S West Communications, Inc., Bellsouth Telecommunications, Inc., Bell Atlantic Telephone Companies, Southwestern Bell Telephone Company v. Federal Communications Commission and United States of America, Wiltel, Inc., Eds Corporation, International Business MacHines Corporation, Intervenors
19 F.3d 1475 (D.C. Circuit, 1994)
Storer Cable Communications v. City of Montgomery
806 F. Supp. 1518 (M.D. Alabama, 1992)