FCC Clarifies Review of Foreign Ownership

The FCC currently reviews proposals to approve foreign ownership under Section 310(b) of the Communications Act, where the ownership interest is more than 25%. The Communications Act, Section 310(b), prevents foreign owners from directly holding more than 20% interest in a broadcast license.  However, it will allow foreign ownership of more than 25% in a US company that directly owns or controls a license, provided the FCC rules that such ownership is in the public interest. 

Entities looking to exceed the 25% limit must file a petition for declaratory ruling with the Commission.  Review of the petition has been done on a case-by-case basis. In its most recent decision, the FCC is looking to codify its review and is instructing the Media Bureau to establish specific processing guidelines. 

"We find that processing guidelines would benefit the Commission’s treatment of broadcast license applications, and we direct and delegate authority to the Media Bureau to specify processing guidelines for applications filed by a broadcast licensee during the pendency of the remedial process.113 The processing guidelines will provide guidance on the topics discussed in the Section 310 NPRM, including: (1) routine types of applications that should continue to be processed in the normal course during the pendency of the remedial process, such as applications related to the continued operations of currently authorized broadcast facilities (e.g., applications for special temporary authority or minor modifications); and (2) non-routine applications such as major modifications, license renewals, and assignments/transfers of control, that would require heightened scrutiny during the pendency of a remedial petition."

Stations, especially those with ownership interests from Canada, should examine this decision.

You can access the FCC’s decision here.