Monty Tayloe

The FCC expanded the reporting area for communications outages caused by Hurricane Helene to include counties in Tennessee and Virginia and additional counties in South Carolina, said a public notice in Monday’s Daily Digest. Reports from the affected counties show communications services experiencing outages from the storm but improving.

The FCC released its order approving 3-2 radio broadcaster Audacy’s request for a temporary waiver of its foreign-ownership requirements. The dissents from both FCC Republicans condemn the order as a deviation from normal FCC procedure, but neither mentions by name the involvement of the Soros family in the deal, though that has been the main focus of Republican lawmakers and conservative media critical of the restructuring. Commissioner Brendan Carr previously called the waiver a “Soros shortcut.” To suggest that Audacy is receiving special treatment is “cynical and wrong,” said FCC Chairwoman Jessica Rosenworcel, pointing to numerous similar grants from the FCC going back to 2018. “Our practice here and in these prior cases is designed to facilitate the prompt and orderly emergence from bankruptcy of a company that is a licensee under the Communications Act.”

FCC Chairwoman Jessica Rosenworcel acknowledged Friday that the agency’s definition of AI may need fine-tuning and rejected the idea of a dedicated AI regulatory agency. Speaking at the 7th Annual Berkeley Law AI Institute, she also discussed the end of Chevron deference.

An order approving Audacy’s request for a temporary exemption from the foreign-ownership rules was adopted but isn’t expected to be released before next week, FCC officials told us. The waiver would allow Audacy to complete foreign-ownership review after it finishes a bankruptcy restructuring that involves control of the broadcaster passing to a fund affiliated with George Soros' family. FCC Republicans hadn’t submitted dissenting statements Wednesday afternoon but indicated they plan to do so, the agency officials said. Broadcast industry officials, attorneys and others told us the Audacy transaction wouldn’t attract as much attention without Soros’ name attached, and that radio broadcasters have long sought increased private equity investment in their industry. “They’re making it a political ax,” said Christopher Terry, University of Minnesota media law professor. “The radio industry has been cash-strapped for 20 years.”

Legislators, broadcasters, cable groups, the Heritage Foundation and civil rights groups disagree on whether the FCC can or should require disclosures for political ads created with generative AI, according to comments filed in docket 24-211 by Thursday’s deadline.

The “must-vote” clock on radio group Audacy’s request for a temporary waiver of FCC foreign-ownership rules is set to expire Wednesday, and FCC officials told us they're expecting its approval, though at least one Republican will dissent on what in several past proceedings has been a routine request. Audacy, which owns more than 200 stations and is the second-largest radio group in the U.S., is seeking the waiver to allow it to first complete a bankruptcy restructuring that has George Soros-affiliated entities purchasing its stock. The FCC’s Democrats have already voted the item, agency officials told us.

The FCC’s June rules for foreign-sponsored content violate the Administrative Procedure Act because the agency didn’t provide notice of plans for expanding the 2021 rules to cover political ads and public service announcements, said NAB in a petition for review filed Monday with the U.S. Court of Appeals for the DC Circuit. The 2024 order was a response to a D.C. Circuit ruling in favor of an NAB-backed challenge to portions of the FCC's 2021 foreign-sponsored content rules. The FCC “did not even attempt to provide a rationale for changing course,” to go after PSAs and issue ads, NAB said in the filing, which echoes arguments Commissioners Nathan Simington and Brendan Carr raised in dissents back in May. “Adopting rule changes nobody could have reasonably anticipated is a textbook example of unfair surprise,” Carr wrote at the time.

After senators sent letters to all five FCC commissioners Friday calling for the agency to avoid “weaponization” of its licensing authority against broadcasters, Commissioner Nathan Simington responded, saying the FCC should renew the license of Fox station WTXF-TV Philadelphia over the opposition of public interest group the Media and Democracy Project (MAD). Letters from Sens. Ed Markey, D-Mass., and Ron Wyden, D-Ore., referenced recent comments from Republican presidential nominee Donald Trump against ABC (see 2409120056).

Attorneys, academics and First Amendment experts told us that Republican presidential candidate Donald Trump’s calls for ABC to lose its license over Tuesday's presidential debate telecast (see 2409110058) are nonsensical and that government action against a broadcaster would likely ultimately fail. In addition, some said presidential calls for action against broadcasters over their reporting aren’t unprecedented. “All political players tend to do this when it suits them,” said veteran First Amendment attorney Robert Corn-Revere, now chief counsel for the Foundation for Individual Rights and Expression. “None of them have the constitutional authority to back it up.”

In a dissent attached to a combined $3.6 million forfeiture against Sinclair Broadcast and others over kidvid violations, FCC Commissioner Nathan Simington has vowed he will dissent from monetary forfeitures until the agency “formally determines the bounds of its enforcement authority.” Simington's move comes in the wake of the recent U.S. Supreme Court decision SEC v. Jarkesy. The order was approved 3-2, with Commissioner Brendan Carr also dissenting. The forfeiture order was adopted Aug.14, but not released until Thursday. The FCC didn't immediately comment on the delay. “I call on the Commission to open a Notice of Inquiry to determine the new constitutional contours of Commission enforcement authority,” Simington wrote. “The statutory structure governing the FCC’s forfeiture power is quite different from that of the SEC,” the FCC said in a footnote in the order, arguing that the agency’s enforcement actions don’t violate the Seventh Amendment right to a jury trial as SCOTUS ruled the SEC’s do.