Cable groups plan to sue the FCC over repeal of the national TV ownership cap

An anonymous reader quotes a report from ArsTechnica: Cable lobby groups notified the Federal Communications Commission that they will sue the agency to block its controversial repeal of the National Television Ownership Rule, which limits the number of broadcast TV stations a single company may own. The cable groups said that larger broadcast TV station groups will have leverage to demand higher retransmission fees from TV providers, resulting in "higher monthly TV bills for consumers." They said the FCC repeal order "arbitrarily and capriciously ignores the harms that will surely follow from allowing broadcast station groups to exceed the National Cap." The cable lobby groups represent top providers Comcast, Charter, and various other cable operators. Top cable companies have also expanded through mergers. Charter completed a purchase of Cox in August after the FCC rejected protests by advocacy groups that said the cable deal "would create unchecked gatekeeper power over Internet distribution" and make it easier for the biggest cable companies to raise prices. [...] The TV ownership rule prohibits any single broadcast station owner from reaching more than 39 percent of all TV households in the US. Congress directed the FCC to set the cap at 39 percent in 2004. On Friday, cable lobby groups submitted a petition asking the FCC to keep the TV ownership cap in place until litigation over the FCC's authority to repeal the rule is over. The cable groups' filing said the FCC repeal of the TV ownership cap violates the 2004 action by US lawmakers. The decision by Congress to set the cap at a precise numerical threshold was unambiguous, the filing said. "Congress established the National Cap at 39 percent in the 2004 CAA [Consolidated Appropriations Act] in direct response to the FCC's attempt to aggressively raise the Cap to 45 percent and made repeated references to the 39 percent Cap in the statute," the petition said. The petition to the FCC is mainly a procedural step as the commission isn't likely to stay its own order. The cable groups said they intend to sue the commission in a US appeals court once the FCC order is published in the Federal Register. After the lawsuit is filed, they can ask the court to issue a preliminary injunction that would keep the TV ownership cap in place pending the outcome of litigation. [...] The cable groups' petition said the FCC can't change the cap because the 2004 law "references the 39 percent Cap as statutory, not regulatory." A provision requiring divestiture of stations "specified that someone exceeding 'the 39 percent national audience reach limitation in paragraph (1)(B)' of 'section 202(c)' of '[t]he Telecommunications Act of 1996' 'shall have not more than 2 years to divest,'" the petition said. "Likewise, Congress singled out the Commission's only mechanism for setting aside statutory requirements -- the Commission's forbearance authority under 47 U.S.C. 160 -- and made clear that it 'shall not apply to any person or entity that exceeds the 39 percent national audience reach limitation,'" the cable lobby petition said. The FCC order argued that the agency's "ability to forbear from enforcement of its rules is distinct from its power to alter or eliminate those rules," and that the FCC forbearance authority doesn't apply to regulation of broadcasters. Read more of this story at Slashdot.

Cable industry to sue, says FCC can't repeal TV ownership limit set by Congress.