Media has never been more important and pervasive in our lives. Whether it's online, television, video, wireless, or wearable devices, Americans can't seem to live without it for more than a few minutes.
So it makes sense that the newly created Federal Communications Commission would be led by the next Congressman. Chairman Brendan Kerr expands agency's reach More and more Americans are entering the field of engagement. As such, it can become as important and intrusive in our lives as the very media it regulates.
Under the Carr administration, several important principles would guide the agency's direction: deregulation, free integration, and America first. But there will also be some new practices that shape that profile.
We can expect Chairman Kerr to restructure the vast powers currently held by FCC agencies and centralize decision-making in the commissioner's office. Bureaus now wield extraordinary powers to deny or approve satellite and broadcast licenses, impose fines and penalties, and derail deals on procedural grounds that often dictate the outcome. In the Tegna-Standard General farce.
Consumer issues have been influential at the FCC since Barack Obama, but new issues The FCC is certain to readjust the scale in favor of business.. The commission has relied on a number of “advisory groups” whose members include representatives from public interest groups and industry to inform decisions on consumer issues. Although valuable, these groups can be streamlined or eliminated entirely.
Removing restrictions on broadcast ownership should be one of the first items passed, and this decision would allow major TV stations like Nexstar (which acquired The Hill in 2021), Sinclair, and Fox Television to The Group will be able to become more competitive in a changing and competitive market. They have called for a more up-to-date definition of the media market, including a number of new competitors.
In fact, Secretary Carr wrote: project 2025 “Rapidly evolving market conditions support repealing many of the heavy-handed FCC regulations adopted when all technology operated in silos. It contains a number of regulations that can have a restrictive effect, because they limit the competition for advertising dollars to a far more limited extent than what exists today. is. ”
The new FCC promises to maintain jurisdiction over industry mergers and be less hostile to companies seeking to consolidate. This alone should encourage merger and acquisition deals that have been sitting on the sidelines waiting for a more favorable regulatory environment to develop.
But not all mergers are undertaken lightly.
One such deal that will come under increased scrutiny under the new regime is the proposed Paramount-Skydance merger. Earlier this year, Paramount (owner of CBS) and National Amusements entered into exclusive negotiations with Skydance Media for a three-way deal to combine media assets. Valued at $28 billion. Chairman Kerr has indicated that he will consider the Paramount merger very carefully for a variety of reasons.
Typically, the FCC limits its review to the transfer of broadcast licenses owned by CBS, but this is a fairly mundane investigation. But beyond the mundane license transfers, there are other issues at CBS and Paramount that have caught the incoming chairman's attention.
For one thing, “60 Minutes'' producers decided to: Edit broadcast interview with Vice President Kamala Harris It has been flagged for possible election interference and could be subject to FCC action and fines. President-elect Trump has suggested that the network's broadcast license should be revoked. for the result You may not be able to pass the statutory meetingCarr wants to take a closer look.
Earlier this month, Paramount's largest Class A shareholder, Gabelli Asset Management, requested the following from the FCC, an unprecedented move for a major shareholder. Suspend consideration of merger. Gabelli I need more time This is to consider the “fairness of the merger to minority shareholders,” and the company has “concerns” about National Amusements' control of Paramount stock. The concern is that Paramount is on the one hand paying tens of millions of dollars to three different CEOs, while on the other hand cutting back on essential funding. In a multibillion-dollar merger, these are legitimate questions.
Paramount also has a long history Stalled contract with major viewer measurement company Nielsenthe media industry is concerned. Advertisers, ad agencies, media buyers, and content providers are aware that Paramount is not measuring all of its viewers, and worse, completely ignoring its diverse local audiences. It points out that the decision was made to use a measurement system that was both cheap and unreliable. And if you have a demographic group Chairman Kerr is concerned about Often ignored and underserved are rural Americans.
In an era where advertising drives all mediaa lack of accurate viewership will impact revenue. All of this does not seem to be a very sound business decision for Paramount, and in an increasingly fragmented media market, underestimating viewership proves to be financially unsustainable. , leading to measurable revenue losses for advertisers and content providers. To the extent that these things affect audiences, prices, and competition, intense scrutiny from the FCC and even Congress is warranted.
The FCC is bound by the “public interest” statute, which is a legally vague standard. But assuming a “public interest” nexus can be established, it is this criterion that makes a review of the proposed $28 billion Paramount-Skydance merger even more persuasive.
We should also hope that the new FCC will work better. activist sec. Securities regulation is constantly changing in response to market demands and trends, and the new FCC is likely to follow that successful model, albeit with a lighter touch.
Carr, who has served as general counsel, commissioner and now chairman of the FCC, has the institutional credibility to be politically courageous in consolidating power and bringing about change. Congressional Oversight Hearings, typically a source of anxiety for the FCC, should provide a warm and friendly status check for Mr. Carr. And in the meantime, Chevronism is overturnedthe agency should be able to hold its own in the appellate court.
meaningful Backlash from Big Tech and consumer groups is unlikely to gain support.much less widespread under the new FCC. This does not mean that consumers are not important. It also does not mean that industries such as communications, broadcasting, and satellite will pass completely. But it does mean they are much more likely to be able to handle their priorities in a short period of time, which would be a noticeable and welcome change.
With unfettered opposition from the House, Senate, and executive branch, the FCC under the Carr administration could establish procedural and substantive precedents that will endure for decades to come. Changes are coming in the technology field. A more predictable regulatory approach should be a breath of fresh air for investors, carriers and media companies. And to viewers and consumers, the agency promises to be a leaner, meaner, and more present part of American life than ever before.
Adonis Hoffman writes about business, law, and policy. A former adjunct professor at Georgetown University, he has held senior positions in the U.S. House of Representatives and the Federal Communications Commission. Mr. Hoffman and Mr. Carr also served as general counsel to the FCC Commissioner from 2013 to 2015.
