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JonSlice · 09-16-03, 03:54 PM

Senate Votes to Reverse New Media Rules
1 hour, 45 minutes ago

By Jeremy Pelofsky

WASHINGTON (Reuters) - The Republican-controlled U.S. Senate on Tuesday defied opposition from the Bush administration and voted 55-40 to rescind new regulations allowing large media companies to grow even bigger.

Fearing fewer viewpoints and decreasing local news coverage, 12 Republicans joined most of the Democrats to back a resolution that would undo rules narrowly adopted by the Republican-led Federal Communications Commission in June.

Those rules would allow television networks to own more local stations and permitting a company to own a newspaper, television stations and radio outlets in a single market.

The FCC rules do "not protect the localism and the diversity, particularly in the newspaper-television market," said Sen. Kay Bailey Hutchison (news, bio, voting record), Republican from Texas.

The resolution of disapproval faces a tougher battle in the U.S. House of Representatives and a threat of a veto by President Bush if it reaches his desk. It would take 67 votes in the Senate to override a presidential veto.

"I know of no plans to bring it up," House Speaker Dennis Hastert's spokesman John Feehery said of the resolution.

The House has already passed a bill that would prevent the FCC from spending money to enforce its new national television cap for a year, and the Senate is expected to follow. The White House has threatened to also veto that measure.

After ordered by an appeals court to better justify its media ownership rules, the three FCC Republican commissioners approved the new regulations, which would allow television networks to own local stations that collectively reach 45 percent of the national audience, up from 35 percent.

The new rules would also permit one company to own a newspaper, a television station and several radio stations in a single market, lifting a decades-old ban on cross-ownership. A company would also be permitted to own two local television stations in more local markets.

The regulations were drawn up under the leadership of FCC Chairman Michael Powell, who argued the relaxed limits were necessary to reflect the proliferation of cable, satellite television and the Internet offerings as well as preserve over-the-air broadcast television.

"That disapproval resolution absolutely muddies the media regulatory waters," Powell said in a telephone interview ahead of the vote. He added that if Congress did not like the new rules, it should give the agency better guidance "and not these odd anti-votes that only cloud the picture."

Television networks like Viacom Inc.'s CBS and News Corp.'s Fox contended they need to acquire more local stations to compete against cable and satellite television services.

But the changes have drawn fire from a slew of critics ranging from the National Rifle Association to Consumers Union as well as Democrats and Republicans in Congress.

"If we allow the limited broadcast spectrum to be controlled by a handful of companies, how can we maintain the free marketplace of ideas?" said Sen. Tom Daschle, the Senate Democratic leader.

A federal appeals court in Philadelphia has already put the new FCC rules on hold, pending judicial review. The judges plan to hear arguments in early November.

09-16-03, 03:54 PM	#1 (permalink)
JonSlice Join Date: Mar 2003 Location: the cliff Posts: 219	Senate Votes to Reverse New Media Rules Senate Votes to Reverse New Media Rules 1 hour, 45 minutes ago By Jeremy Pelofsky WASHINGTON (Reuters) - The Republican-controlled U.S. Senate on Tuesday defied opposition from the Bush administration and voted 55-40 to rescind new regulations allowing large media companies to grow even bigger. Fearing fewer viewpoints and decreasing local news coverage, 12 Republicans joined most of the Democrats to back a resolution that would undo rules narrowly adopted by the Republican-led Federal Communications Commission in June. Those rules would allow television networks to own more local stations and permitting a company to own a newspaper, television stations and radio outlets in a single market. The FCC rules do "not protect the localism and the diversity, particularly in the newspaper-television market," said Sen. Kay Bailey Hutchison (news, bio, voting record), Republican from Texas. The resolution of disapproval faces a tougher battle in the U.S. House of Representatives and a threat of a veto by President Bush if it reaches his desk. It would take 67 votes in the Senate to override a presidential veto. "I know of no plans to bring it up," House Speaker Dennis Hastert's spokesman John Feehery said of the resolution. The House has already passed a bill that would prevent the FCC from spending money to enforce its new national television cap for a year, and the Senate is expected to follow. The White House has threatened to also veto that measure. After ordered by an appeals court to better justify its media ownership rules, the three FCC Republican commissioners approved the new regulations, which would allow television networks to own local stations that collectively reach 45 percent of the national audience, up from 35 percent. The new rules would also permit one company to own a newspaper, a television station and several radio stations in a single market, lifting a decades-old ban on cross-ownership. A company would also be permitted to own two local television stations in more local markets. The regulations were drawn up under the leadership of FCC Chairman Michael Powell, who argued the relaxed limits were necessary to reflect the proliferation of cable, satellite television and the Internet offerings as well as preserve over-the-air broadcast television. "That disapproval resolution absolutely muddies the media regulatory waters," Powell said in a telephone interview ahead of the vote. He added that if Congress did not like the new rules, it should give the agency better guidance "and not these odd anti-votes that only cloud the picture." Television networks like Viacom Inc.'s CBS and News Corp.'s Fox contended they need to acquire more local stations to compete against cable and satellite television services. But the changes have drawn fire from a slew of critics ranging from the National Rifle Association to Consumers Union as well as Democrats and Republicans in Congress. "If we allow the limited broadcast spectrum to be controlled by a handful of companies, how can we maintain the free marketplace of ideas?" said Sen. Tom Daschle, the Senate Democratic leader. A federal appeals court in Philadelphia has already put the new FCC rules on hold, pending judicial review. The judges plan to hear arguments in early November.