Last week’s election will have a significant impact on broadcasters. First and foremost, it will lead to new leadership at the FCC. Current Chair Jessica Rosenworcel will leave and be replaced. At this point, it’s too early to determine who will be the new Chairman. Certainly, current Republican commissioners Brendan Carr and Nathan Simington will be in contention.
Almost immediately, Republicans called for the FCC to cease moving forward with any politically controversial issues during the transition. Chair of the House Commerce Committee Cathy McMorris Rogers sent a letter to FCC Chair Jessica Rosenworcel stating:
“The results of the 2024 presidential election are now apparent and leadership of the Federal Communications Commission (FCC) will soon change. As a traditional part of the peaceful transfer of power, the FCC should immediately stop work on any partisan or controversial item under consideration, consistent with applicable law and regulation.
There are many bipartisan, consensus items that the FCC could pursue to fulfill its mission before the end of your tenure. I urge you to focus your attention on these matters.”
A similar letter was sent by Sen. Ted Cruz, Ranking Minority Member of the Senate Commerce Committee. FCC Commissioner Brendan Carr expressed a similar sentiment. Of course, FCC Chair Rosenworcel does not have to comply with these requests. She will remain as the FCC Chair, with a Democratic majority, until the new administration is sworn in.
A Republican administration means that the composition of the commission will flip from 3 Democrats and 2 Republicans to 3 Republicans & 2 Democrats. A Republican majority will affect policy. As a general matter, the FCC will be less regulatory. For example, we anticipate there will be more flexibility with respect to radio and TV ownership rules. Many of the pro-regulatory initiatives, including imposing local content guidelines, are likely to be dropped.
On the other hand, we may see different issues arise. For example, some have suggested that we conduct another auction for TV spectrum. Questions have been raised with respect to the FCC’s legal authority to impose fines. There may be additional issues regarding the license renewal process.
There will be a focus on Big Tech. The FCC’s Political “AI” proceeding is likely to fade away. It is also worth noting that both Republican Commissioners dissented from reinstating the EEO Form 395B reporting form. We expect there to be renewed interest at the FCC and in Congress to address the immunity Big Tech currently enjoys from liability under Section 230.
We will keep a close watch on all these issues going forward.
You can access Chair Cathy McMorris’s letter here.
You can access Sen. Ted Cruz’s letter here.
You can access FCC Commissioner Brendan Carr’s statement here.
Noted communications attorney David Oxenford discussed the potential changes to the FCC in his Broadcast Blog. You can access his memo here.