Time Warner Entertainment Co. v. United States

211 F.3d 1313, 341 U.S. App. D.C. 255, 28 Media L. Rep. (BNA) 1967, 20 Communications Reg. (P&F) 483, 2000 U.S. App. LEXIS 11032, 2000 WL 571815
CourtCourt of Appeals for the D.C. Circuit
DecidedMay 19, 2000
Docket96-5272
StatusPublished
Cited by15 cases

This text of 211 F.3d 1313 (Time Warner Entertainment Co. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Time Warner Entertainment Co. v. United States, 211 F.3d 1313, 341 U.S. App. D.C. 255, 28 Media L. Rep. (BNA) 1967, 20 Communications Reg. (P&F) 483, 2000 U.S. App. LEXIS 11032, 2000 WL 571815 (D.C. Cir. 2000).

Opinion

Opinion for the Court filed by Circuit Judge GINSBURG.

GINSBURG, Circuit Judge:

The Time Warner Entertainment Company and the United States appeal from portions of the judgment in Daniels Cablevision, Inc. v. United States, 835 F.Supp. 1 (D.D.C.1993). At issue is the facial constitutionality of two provisions of the Cable Television Consumer Protection and Competition Act of 1992, Pub.L. No. 102-385, 106 Stat. 1460 (1992 Cable Act). The “subscriber limits provision” directs the Federal Communications Commission to limit the number of subscribers a cable operator may reach. 47 U.S.C. § 533(f)(1)(A). The “channel occupancy provision” directs the Commission to limit the number of channels on a cable system that may be devoted to video programming in which the operator has a financial interest. Id. § 533(f)(1)(B). Time Warner argues that both provisions facially' — 'that is, no matter how sensitively or sensibly they might be implemented — violate the First Amendment to the Constitution of the United States; the Commission argues the opposite. We conclude that both provisions are facially constitutional.

I. Background

Time Warner and other owners of cable television systems challenged the constitutionality of the subscriber limits, the channel occupancy, and various other provisions of the 1992 Cable Act in Daniels Cablevision. Upon cross-motions for summary judgment, the district court held that the subscriber limits provision is unconstitutional, see 835 F.Supp. at 10, but the channel occupancy provision is constitutional, see id. at 7 & n. 11. * The Government appealed the former ruling while Time Warner appealed the latter.

We consolidated both appeals with Time Warner’s petition to this court for review of the regulations the Commission had promulgated to implement the two provisions. See Time Warner Entertainment Co., L.P. v. Federal Communications Comm’n (Time Warner), 93 F.3d 957, 979-80 (D.C.Cir.1996). In September 1999, however, after the consolidated cases had been scheduled for oral argument, the Commission initiated further rulemaking proceedings with respect to the two provisions. Consequently, we severed Time Warner’s statutory challenges from its pe *1316 tition for review of the regulations, held the latter in abeyance pending the completion of the further rulemaking, and heard oral argument on the constitutionality of the two statutory provisions that we address today.

II. Analysis

We review de novo the district court’s grant of summary judgment. See, e.g., Aka v. Washington Hospital Center, 156 F.3d 1284, 1288 (D.C.Cir.1998).

A. The Subscriber Limits Provision

1. The Standard of Review

Time Warner argues that the subscriber limits provision is a content-based restriction of its ability to communicate with its audience, and as such is subject to strict scrutiny. See urner Broadcasting System, Inc. v. Federal Communications Comm’n (Turner I), 512 U.S. 622, 642, 114 S.Ct. 2445, 129 L.Ed.2d 497 (1994) (Court has applied “the most exacting scrutiny to regulations that suppress, disadvantage, or impose differential burdens upon speech because of its content”). The Government denies that the subscriber limits provision is content-based, and argues for an intermediate level of scrutiny. See id.

In order to determine the applicable standard of review, then, we must decide whether the subscriber limits provision is content-based. In general, the “principal inquiry in determining content neutrality ... is whether the government has adopted a regulation of speech because of [agreement or] disagreement with the message it conveys.” Id. (quoting Ward v. Rock Against Racism, 491 U.S. 781, 791, 109 S.Ct. 2746, 105 L.Ed.2d 661 (1989)). A law that singles out speech based upon the ideas or views expressed is content-based, whereas a law that “eonfer[s] benefits or impose[s] burdens on speech without reference to the ideas or views expressed” is most likely content-neutral. Id. at 643, 114 S.Ct. 2445; see also id. at 661, 114 S.Ct. 2445 (law that does not “pose ... inherent dangers to free expression, or present ... potential for censorship or manipulation, [will not] ... justify application of the most exacting level of First Amendment scrutiny”).

As a cable operator, Time Warner exercises editorial discretion in selecting the programming it will make available to its subscribers. Time Warner argues that the Congress limited its ability to speak by restricting the number of subscribers— and therefore potential viewers—it may reach with the programming it has selected. That this limitation is content-based, according to Time Warner, is evident from the Senate Report that accompanied the final version of the 1992 Cable Act. See H.R. Conf. Rep. No. 102-862, at 81-82 (1992), reprinted in 1992 U.S.C.C.A.N. 1133, 1133, 1263-64 (adopting provisions of Senate Bill, as described in Senate Report, S.Rep. No. 102-92, at 32 (1991) [hereinafter S. Rep.] ).

That Report indicated the Congress was concerned about increasing concentration of ownership and control in the cable industry:
... First, there are special concerns about concentration of the media in the hands of a few who may control the dissemination of information. The concern is that the media gatekeepers will (1) slant information according to their own biases, or (2) provide no outlet for unorthodox or unpopular speech because it does not sell well, or both....
The second concern about horizontal concentration is that it can be the basis of anticompetitive acts. For example, a market that is dominated by one buyer of a product, a monopsonist, does not give the seller any of the benefits of competition....
S. Rep. at 32-33, 1992 U.S.C.C.A.N. at 1165-66.

Time Warner contends that the Congress’s concern that media gatekeepers would “slant” information or fail to provide *1317 outlets for “unorthodox” speech reflects a preference for one type of content and an intent to suppress another, namely, the speech of cable operators. The Company likens the Congress’s efforts to limit its speech to the restraints the Supreme Court held unconstitutional in Buckley v. Valeo, 424 U.S. 1, 96 S.Ct. 612, 46 L.Ed.2d 659 (1976), and

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211 F.3d 1313, 341 U.S. App. D.C. 255, 28 Media L. Rep. (BNA) 1967, 20 Communications Reg. (P&F) 483, 2000 U.S. App. LEXIS 11032, 2000 WL 571815, Counsel Stack Legal Research, https://law.counselstack.com/opinion/time-warner-entertainment-co-v-united-states-cadc-2000.