Sinclair Court Challenge Of Retrans Rules Should be Denied, Says FCC
Sinclair’s petition for review of FCC rules barring joint retransmission consent negotiation should be denied, said the commission in an opposition filing in the U.S. Court of Appeals for the D.C. Circuit Monday. Sinclair filed its petition in September, asking…
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the court to overturn the FCC’s April rule barring differently owned top-four stations in the same market from jointly negotiating retrans deals with pay-TV companies. Sinclair had argued that the FCC rule change exceeded the commission’s authority and hadn’t been supported by the record in the rulemaking proceeding, but the commission disagreed. The Communications Act gives the FCC the authority to regulate retrans negotiation, and to make sure those negotiations are conducted in good faith, the FCC said. The commission pointed to filings in the record by the Department of Justice supporting the ban on joint negotiation and other filings showing that retrans prices rise as a result of joint negotiation as providing the foundation for the rule change. “On the basis of this record, the Commission reasonably concluded that joint negotiation by separately owned Top Four stations in the same market violates the statutory duty to negotiate in good faith,” the FCC said. The commission also attacked Sinclair’s argument that the FCC needed to demonstrate that the joint negotiations had violated antitrust rules to stiffen the rules. “Contrary to Sinclair’s suggestion, the Commission was not required to find a violation of antitrust law before it imposed a ban on joint negotiation,” the FCC said.