FCC OKs controversial media-ownership rule

updated 2:03 p.m. ET Dec. 18, 2007

WASHINGTON - The Federal Communications Commission, overturning a 32-year-old ban, voted Tuesday to allow broadcasters in the nation's 20 largest media markets to also own a newspaper.

FCC Chairman Kevin Martin was joined by his two Republican colleagues in favor of the proposal, while the commission's two Democrats voted against it.

Martin pushed the vote through despite intense pressure from House and Senate members on Capitol Hill to delay it. The chairman, however, has the support of the White House, which has pledged to turn back any congressional action that seeks to undo the vote.

At Tuesday's meeting, the chairman described the media ownership proceeding as "the most contentious and divisive issue" to come before the commission.

That proved true as the two Democrats blasted Martin's plan in unusually strong language for the normally sedate agency.

Martin said his proposal represented "a relatively minor loosening" of the cross-ownership rule. He noted concern for the steady decline in revenue for newspaper companies and said his proposal "strikes a balance" between the realities of the changing media marketplace and the preservation of diversity and competition in broadcasting.

As the commission loosened ownership requirements on one industry, it tightened the reins on another by approving a 30 percent national cap on subscribers for cable companies. The move, opposed by cable companies, would prevent a single cable television provider from serving 30 percent or more of the national pay television audience.

Martin was joined by the two Democrats in voting in favor of the cap while the two Republicans on the commission were opposed.

While Democrats Michael Copps and Jonathan Adelstein supported Martin on the cable cap, they were bitterly opposed to his media ownership rule.

The two men blasted Martin for making changes to his proposal "in the dead of night" and just prior to the meeting that they said created new loopholes in the rule instead of closing them, as Martin pledged during a recent hearing on Capitol Hill.

"Anybody who thinks our processes are open, thoughtful or deliberative should think twice in light of these nocturnal escapades," said Adelstein.

Adelstein said Martin's proposal "will allow for waivers for six new newspaper-broadcast combinations and 36 grandfathered stations."

In a lengthy statement, Copps described the commission's action as a "terrible decision."

"In the final analysis, the real winners today are businesses that are in many cases quite healthy, and the real losers are going to be all of us who depend on the news media to learn what's happening in our communities and to keep an eye on local government," he said.

Republican Commissioner Deborah Taylor Tate described the media ownership process as "transparent and thorough." She said the changes proposed are narrow, and hinted she favored a greater liberalization of the media ownership rules.

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