Major media is more than concentrated enough
Appeals Court Keeps Stay on Media Rules
Thu Jun 24, 2004 02:31 PM ET
WASHINGTON (Reuters) - A U.S. appeals court refused on Thursday to allow loosened federal media rules on media ownership to take effect, dealing a blow to large media companies like News Corp. that are hoping to expand.
The U.S. Court of Appeals for the Third Circuit said the new rules would not take effect until the Federal Communications Commission better explained how it came up with them.
"The Commission has not sufficiently justified its particular chosen numerical limits for local television ownership, local radio ownership, and cross-ownership of media within local markets," the court's 218-page opinion said.
The FCC last year lifted a ban on a company owning both a newspaper and television stations or radio outlets in a single market. It also agreed in many cases to allow a company to own two television stations in a single market.
The FCC said it eased the rules to help broadcasters compete against pay television services. But opponents fear the rules would only allow media conglomerates like Tribune Co. and News Corp. to grow even bigger to the detriment of local news reporting and diverse viewpoints.
