FCC Proposes $150,000 Fine Against Mission Over Good Faith Violations
The FCC Media Bureau proposed a $150,000 forfeiture for Mission Broadcasting over violations of the good faith retransmission negotiation rules, said a notice of apparent liability released late Friday. The violations stem from Nexstar's negotiations on Mission’s behalf with Comcast…
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for retransmission consent rights for Mission’s station WPIX New York (see 2301180034), the NAL said. Nexstar allegedly conditioned retrans consent on Comcast’s acceptance of contract proposals that “would foreclose the filing of future complaints with the Commission,” which the FCC said is “inconsistent with competitive marketplace considerations.” Nexstar’s negotiating retrans rights for WPIX on Mission’s behalf is the subject of litigation between DirecTV and Nexstar (see 2310040024), and has also been the focus of legal challenges brought by Comcast and Charter (see 2211220061). The NAL doesn’t directly address allegations from the MVPDs that Nexstar and Mission’s relationship violates antitrust laws, but it says the proposed forfeiture was adjusted upward in light of Nexstar’s ability to pay, citing the companies’ SEC filings. “Mission’s revenues and assets are consolidated with Nexstar’s financial accounting and annual reporting,” said the NAL. “Hence, Mission and Nexstar are effectively treated as a single entity for financial purposes in the Nexstar 10-K.” The agency also dismissed arguments from Mission that it wasn’t responsible for Nexstar's actions. Since Mission identified Nexstar as the “approved delegated negotiator” for WPIX, that argument “contravenes basic principles of agency law” and “ignores Commission precedent that licensees are ultimately responsible for the acts of their licensed stations.” The NAL also contains a footnote that appears to leave room for future enforcement actions involving Mission and Nexstar’s relationship. The Comcast complaint that led to the NAL “alleges additional good faith negotiation violations against both Mission and Nexstar Media Group,” but in this NAL “we address only a subset,” the footnote says. “The remaining allegations are under review by the Commission pending the outcome of ongoing investigations.” Nexstar and Mission didn’t immediately comment,Comcast said it was pleased by the FCC's actions.