Radio Ownership Regulations Upheld by Appeals Court
In a recent ruling, the U.S. Court of Appeals for the Eighth Circuit has made significant changes to the FCC's Local Television Ownership Rules, while upholding the Local Radio Ownership Rules.
The court's decision vacates the Top-Four Prohibition, which prevented ownership of more than one of the top four TV stations in the same market. The court also vacated the FCC’s amendment expanding this to multicast streams and low-power stations. However, the court upheld the FCC’s market definitions and retention of radio ownership limits.
The FCC's 2023 Order, issued under Chair Rosenworcel, retained the local radio caps from the 2018 quadrennial review and emphasized narrow market definitions excluding non-broadcast competition. Broadcasters, led by the National Association of Broadcasters (NAB), challenged the rules arguing for broader competitive market definitions to include nonbroadcast sources, but the court rejected these challenges for radio ownership.
The ruling signifies that future quadrennial reviews by the FCC must focus on deregulation rather than imposing new burdens, aligning with the court's interpretation of Congress's deregulatory intent.
FCC Chairman Brendan Carr, in a reaction statement, focused on the court's decision to toss the top-four rule in the Local Television Ownership Rule. Carr expressed pleasure at the court's agreement to vacate the top-four regulation but expressed dissatisfaction with the FCC's approach to regulating the broadcast industry and its impact on local news sources.
NAB President/CEO Curtis LeGeyt called the decision a "major step forward" for local television broadcasters. However, LeGeyt expressed disappointment that the court did not address radio ownership restrictions.
The Local Radio Ownership Rule allows a licensee to own up to eight commercial radio stations in the largest markets, with a subcap limiting ownership to five on each band (FM/AM). This cap on radio station ownership numbers has been unchanged since being set by Congress in 1996.
The court determined that the FCC's decision not to loosen the Local Radio Ownership Rule was not arbitrary and capricious. The court found that the FCC considered the growing prevalence of non-broadcast programming but articulated a rational reason for not broadening the market definition.
The current status of the local radio ownership rules in the U.S. is that the Federal Communications Commission's (FCC) Local Radio Ownership Rule remains intact and unchanged following the court's decision. In contrast, the court struck down parts of the FCC's Local Television Ownership Rule, specifically vacating the Top-Four Prohibition. The Eighth Circuit has agreed to vacate only the top-four prohibition in the Local Television Ownership Rule.
The NAB has welcomed the decision, with LeGeyt expressing hope that new FCC Chairman Brendan Carr will help modernize the FCC's local radio ownership rules. The court's decision does not affect the Local Radio Ownership Rule or the FCC's media ownership rules, except for the TV and radio limitations.
Summary:
| Aspect | Status Post-Court Ruling (July 2025) | |----------------------------|----------------------------------------------------------| | Local Radio Ownership Rules | Upheld by Eighth Circuit; FCC rules remain unchanged | | Local TV Ownership Rules | Top-Four Prohibition and Note 11 amendment vacated; other TV rules mostly upheld | | Market Definitions | FCC’s narrow definition excluding non-broadcast sources upheld for radio and TV ownership | | Future FCC Quadrennial Reviews | Must lean deregulatory, cannot impose new burdens without robust evidence |
Thus, while the local radio ownership limits remain firmly in place, the FCC must revisit parts of its local TV ownership rules to comply with the court's order.
- The FCC's decision concerning the Local Radio Ownership Rules was upheld by the Eighth Circuit, implying that the existing financial constraints on radio station ownership numbers, as set in 1996, remain in effect.
- In contrast, the Top-Four Prohibition in the FCC's Local Television Ownership Rules was vacated by the court, signaling a shift in the broadcast industry's finance and business dynamics within the media industry.
- The court's ruling on the Local Television Ownership Rules highlights a need for the FCC to review and potentially revise parts of its regulations to align with the court's decisions, particularly focusing on the TV market definitions and ownership rules.
