Cantwell, Colleagues Urge Department of Justice and Federal Communications Commission to Closely Scrutinize Media Mergers, Particularly, the Proposed Sinclair Broadcasting/Tribune Media Merger
Senator continues to raise concerns about competition and media consolidation
SEATTLE, WA – Today, U.S. Senator Maria Cantwell (D-WA) and nine of her Senate colleagues urged the U.S. Department of Justice (DOJ) Antitrust Division and Federal Communications Commission (FCC) to closely scrutinize media mergers that fall within their jurisdictions, particularly, the proposed Sinclair Broadcasting/Tribune Media merger.
In a letter to Chairman Ajit Pai, the senators urge the FCC to redouble its efforts to investigate proposed media transactions and take action where competition or consumers would be harmed. A combined Sinclair/Tribune would own 233 television stations and reach 72 percent of American households, affecting tens of millions of consumers. Given the recent actions by the FCC to weaken media ownership limitations, large media mergers may become more common.
“Deregulation in the media industry has heightened the need for thorough and impartial reviews of individual transactions. We urge the FCC to redouble its efforts to investigate proposed media transactions and take action where competition or consumers would be harmed,” the senators wrote to FCC Chairman Pai.
In November of 2017, Cantwell requested the inspector general of the Federal Communications Commission (FCC) open an investigation into the objectivity and impartiality of the FCC’s review of the proposed merger of Sinclair Broadcasting and Tribune Media.
In a separate letter to Assistant Attorney General Makan Delrahim, the senators called on the DOJ to conduct a thorough investigation of the proposed Sinclair/Tribune transaction and any subsequent media mergers and to take whatever enforcement action is warranted under applicable antitrust law.
“In light of recent actions by the Federal Communications Commission (FCC) to weaken media ownership limitations, we write to urge the Department of Justice (DOJ) to closely scrutinize media mergers that fall within its jurisdiction, particularly Sinclair Broadcasting’s proposed acquisition of Tribune Media,” the senators wrote to Assistant Attorney General Delrahim. “The relaxation of media regulations under Chairman Pai’s leadership, in addition to disturbing allegations concerning his individual conduct relating to the Sinclair/Tribune transaction, have undermined our confidence that the FCC will conduct an impartial investigation into this proposed merger. To the extent that the FCC is currently incapable or unwilling to conduct an impartial review of the proposed Sinclair/Tribune merger, untainted by political considerations, we are relying on the DOJ to do so.”
In addition to Cantwell, the letters were also signed by Senators Amy Klobuchar (D-MN), Dick Durbin (D-IL), Richard Blumenthal (D-CT), Tom Udall (D-NM), Gary Peters (D-MI), Tammy Baldwin (D-WI), Brian Schatz (D-HI), Edward J. Markey (D-MA), and Tammy Duckworth (D-IL).
The full text of the senators’ letters to DOJ and FCC are below:
Dear Assistant Attorney General Delrahim:
In light of recent actions by the Federal Communications Commission (FCC) to weaken media ownership limitations, we write to urge the Department of Justice (DOJ) to closely scrutinize media mergers that fall within its jurisdiction, particularly Sinclair Broadcasting’s proposed acquisition of Tribune Media.
On September 29, 2017, several of us discouraged Chairman Pai from further attempts to relax the FCC’s media ownership standards without a thorough public review of the state of the broadcast marketplace. Our recommendations were ignored.
At its November Open Meeting, the FCC voted to significantly weaken regulations relating to competition in local media markets. The November vote followed recent FCC decisions to eliminate the Main Studio Rule and reinstate the UHF discount, which likely encouraged Sinclair and Tribune to enter into their merger and expand the universe of potential media transactions.
We agree with the sentiments expressed by FCC Commissioners Jessica Rosenworcel and Mignon Clyburn that by jettisoning these media rules without the collection and review of pertinent industry data, the FCC abdicated its responsibility to uphold the core values of localism, competition and diversity in broadcasting. The FCC seems determined to continue on this troubling course, voting on December 14, along party lines, to begin a comprehensive review of the national television audience cap, a cap set by Congress in 2004. The elimination of these rules will pave the way for further broadcast, radio, and print media consolidation in an increasingly concentrated economy.
Under these circumstances, the need for the DOJ to conduct thorough, objective reviews of individual transactions in the media sector is greater than ever. Sinclair’s proposed acquisition of Tribune is an example of the kind of media merger that raises obvious and troubling competitive issues. Sinclair Broadcasting is already the largest owner of local television stations in the country. A combined Sinclair/Tribune would own 233 television stations and reach 72 percent of American households, affecting tens of millions of consumers. The proposed Sinclair/Tribune merger is precisely the type of media transaction that deserves the highest level of scrutiny from the DOJ. Given the recent relaxation of regulations at the FCC, mergers of this size may become more common.
We urge the DOJ to conduct a thorough investigation of this and any subsequent media mergers and to take whatever enforcement action is warranted under applicable antitrust law. The relaxation of media regulations under Chairman Pai’s leadership, in addition to disturbing allegations concerning his individual conduct relating to the Sinclair/Tribune transaction, have undermined our confidence that the FCC will conduct an impartial investigation into this proposed merger. To the extent that the FCC is currently incapable or unwilling to conduct an impartial review of the proposed Sinclair/Tribune merger, untainted by political considerations, we are relying on the DOJ to do so.
Deregulation in the media industry has heightened the need for thorough and impartial reviews of individual transactions. We urge the DOJ to redouble its efforts to investigate proposed media transactions and take action where competition or consumers would be harmed.
Thank you for your prompt attention to this request.
Sincerely,
–
Dear Chairman Pai:
We write to urge the Federal Communications Commission (FCC) to closely scrutinize media mergers that fall within its jurisdiction, particularly Sinclair Broadcasting’s proposed acquisition of Tribune Media.
On September 29, 2017, several of us discouraged the agency from further attempts to relax the FCC’s media ownership standards without a thorough public review of the state of the broadcast marketplace. Our recommendations were ignored.
At its November Open Meeting, the FCC voted to significantly weaken regulations relating to competition in local media markets. The November vote followed recent FCC decisions to eliminate the Main Studio Rule and reinstate the UHF discount, which likely encouraged Sinclair and Tribune to enter into their merger and expand the universe of potential media transactions.
We agree with the sentiments expressed by FCC Commissioners Jessica Rosenworcel and Mignon Clyburn that by jettisoning these media rules without the collection and review of pertinent industry data, the FCC abdicated its responsibility to uphold the core values of localism, competition and diversity in broadcasting. The FCC seems determined to continue on this troubling course, voting on December 14, along party lines, to begin a comprehensive review of the national television audience cap, a cap set by Congress in 2004. The elimination of these rules will pave the way for further broadcast, radio, and print media consolidation in an increasingly concentrated economy.
Under these circumstances, the need for FCC to conduct thorough, objective reviews of individual transactions in the media sector is greater than ever. Sinclair’s proposed acquisition of Tribune is an example of the kind of media merger that raises obvious and troubling competitive issues. Sinclair Broadcasting is already the largest owner of local television stations in the country. A combined Sinclair/Tribune would own 233 television stations and reach 72 percent of American households, affecting tens of millions of consumers. The proposed Sinclair/Tribune merger is precisely the type of media transaction that deserves the highest level of scrutiny from the FCC. Given the recent relaxation of regulations at the FCC, mergers of this size may become more common.
Today we also wrote to Assistant Attorney General Delrahim asking for close scrutiny of mergers in the media industry. In our letter, we urged the Department of Justice (DOJ) to conduct a thorough investigation of this and any subsequent media mergers and to take whatever enforcement action is warranted under applicable antitrust law. The relaxation of media regulations under the FCC’s leadership, in addition to disturbing allegations concerning your conduct relating to the Sinclair/Tribune transaction, have undermined our confidence that the FCC will conduct an impartial investigation into this proposed merger. A copy of that letter is attached.
Deregulation in the media industry has heightened the need for thorough and impartial reviews of individual transactions. We urge the FCC to redouble its efforts to investigate proposed media transactions and take action where competition or consumers would be harmed.
Thank you for your prompt attention to this request.
Sincerely,
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