Tribune Co. v. Federal Communications Commission

133 F.3d 61, 328 U.S. App. D.C. 198
CourtCourt of Appeals for the D.C. Circuit
DecidedJanuary 16, 1998
Docket97-1228, 97-1229
StatusPublished
Cited by31 cases

This text of 133 F.3d 61 (Tribune Co. v. Federal Communications Commission) 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
Tribune Co. v. Federal Communications Commission, 133 F.3d 61, 328 U.S. App. D.C. 198 (D.C. Cir. 1998).

Opinion

*64 SILBERMAN, Circuit Judge:

Appellant challenges the Federal Communications Commission’s refusal to grant it a permanent waiver, or at least a temporary-waiver pending the outcome of future rule-making, of its daily newspaper cross-ownership rule. We affirm.

I.

Tribune Company, which publishes the Sun-Sentinel newspaper in Fort Lauder-dale, Florida, agreed to merge with Renaissance Communications Corporation, the owner of six television station licenses, including WDZL(TV) in Miami, Florida, 1 subject to the FCC’s approval of the transfer of those licenses to Tribune. The Commission, however, determined that WDZL’s Grade A contour 2 encompassed the entire Fort Lauder-dale community; therefore, WDZL and the Sun-Sentinel were in the same primary market, and the daily newspaper cross-ownership rule prohibited their common ownership. The Commission nevertheless granted Tribune a temporary waiver of its rule, which allowed Tribune to take possession of the WDZL station license (the merger was consummated on March 25, 1997). But it required that Tribune divest itself of that license or the Sun-Sentinel before March 22, 1998, one year from the date of the FCC’s order.

The relevant portion of the Commission’s daily newspaper cross-ownership rule provides that “[n]o license for [a] ... TV broadcast station shall be granted to any party ... if such party directly or indirectly owns, operates or controls a daily newspaper and the grant of such license will result in [t]he Grade A contour of a TV station ... encompassing the entire community in which such newspaper is published.” 47 C.F.R. § 73.3555(d)(3) (1996). The Commission has explained that its rule rests on the twin goals of promoting viewpoint diversity and economic competition. See Multiple Ownership of Standard, FM, and Television Broadcast Stations, Second Report and Order, 50 F.C.C.2d 1046, 1074 (1975). Its constitutionality was unanimously upheld by the Supreme Court in FCC v. National Citizens Committee for Broadcasting (NCCB), 486 U.S. 775, 98 S.Ct. 2096, 56 L.Ed.2d 697 (1978). The Court observed that under the Act’s public interest standard, see 47 U.S.C. §§ 303, 309(a) (1994), it was well within the Commission’s domain to pursue “the First Amendment goal of achieving ‘the widest possible dissemination of information from diverse and antagonistic sources.’” NCCB, 436 U.S. at 795, 98 S.Ct. at 2112 (quoting Associated Press v. United States, 326 U.S. 1, 20, 65 S.Ct. 1416, 1424, 89 L.Ed. 2013 (1945)). It held that in light of the “physical scarcity,” id. at 799, 98 S.Ct. at 2114, of the broadcast spectrum, the rule did not violate the First Amendment rights of newspaper owners because “there is no ‘unabridgeable First Amendment right to broadcast comparable to the right of every individual to speak, write, or publish.’” Id. (citing Red Lion Broadcasting Co. v. FCC, 395 U.S. 367, 388, 89 S.Ct. 1794, 1805-06, 23 L.Ed.2d 371 (1969)). Nor did it matter that the administrative record before the Commission did not conclusively establish that the rule would in fact increase viewpoint diversity in the local communications market; the agency’s predictive judgment was enough because it was based on its expert knowledge. NCCB, 436 U.S. at 796-97, 98 S.Ct. at 2112-13.

Tribune acknowledged that the FCC’s cross-ownership rule would prohibit it from owning both media outlets. But it argued before the Commission that the South Florida mass media market, encompassing Dade (Miami), Broward (Ft. Lauderdale), and Palm Beach counties, was sufficiently diverse and competitive so as to obviate any need to apply the rule in this case. Tribune identified 23 separately owned television stations, 69 radio stations operated by 49 different *65 owners, 7 daily newspapers published by 6 different owners, 15 weekly community newspapers, and in excess of 250 magazines, specialty publications, and consumer journals all serving the South Florida market. It counted 35 cable systems providing an average of 62 channels of programming in the market, and claimed that cable television subscription rates in each county was above 60%. It showed that approximately 85% of all households owned a VCR; it also speculated that many had access to the Internet. And, in light of certain advertising, subscription, and audience share data, it argued that the rule clearly was not needed to encourage economic competition. Tribune claimed that the public would be disserved by strict enforcement of the rule, because it could exploit synergies arising from the common ownership of both print and broadcast news departments to enhance programming so as to compete more effectively with other South Florida news programs. For these reasons, Tribune sought a permanent waiver of the rule.

The Commission was unpersuaded. Its established waiver policy, set forth in the FCC’s 1975 Second Report and Order, provides in relevant part that the Commission will consider waiving the rule “where, for whatever reason, the purposes of the rule would be disserved by divestiture.” In re Applications of Stockholders of Renaissance Communications Corp. and Tribune Co. (Renaissance Communications), FCC97-98, 1997 WL 131036 at ¶ 34 (Mar. 21, 1997). As broad as this language may appear, the Commission has consistently interpreted it to allow for waiver only in “exceptional circumstances.” Metropolitan Council of NAACP Branches v. FCC, 46 F.3d 1154, 1163 (D.C.Cir.1995). A permanent waiver of the rule has been granted only twice. In both instances, the beneficiary was permitted to reacquire a media outlet in financial distress; in effect, the Commission granted waivers to permit a rescue. 3 According to the FCC, Tribune failed to show the sort of extraordinary circumstances that would meet this test. Even if Tribune were correct in asserting there were a number of competing media voices in the South Florida market, the FCC believed its primary concern of ensuring diverse viewpoints from antagonistic sources was unaffected. The Commission thought Tribune’s economic competition evidence similarly unexceptional. And, the public benefits Tribune promised were hardly unique; they would exist in virtually all like combinations. If a waiver were granted on that basis, the rule would be meaningless.

The Commission determined that to the extent Tribune called into question the validity of the rule itself or the FCC’s waiver policy, its arguments should be addressed in the broader context of a rulemaking; they were inappropriate in a restricted licensing proceeding.

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Bluebook (online)
133 F.3d 61, 328 U.S. App. D.C. 198, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tribune-co-v-federal-communications-commission-cadc-1998.