Court Upholds FCC’s Jurisdiction on Cable Programming Access
[ This story was updated on 3/17/10 to reflect some factual inaccuracies. We apologize for the editorial error.]
Last Friday, the Court of Appeals for the DC Circuit upheld a 2007 FCC order that bans exclusive programming contracts between cable TV system operators and cable-owned networks.
Cablevision Systems Corp and Comcast challenged the FCC’s decision to retain the rule, arguing that the prohibition was no longer necessary to preserve competition in the pay-TV market.
The cable operators argued that the order violated their First Amendment rights by impeding their speech through the forced sharing of programming they own. The cable operators said the Commission had also misinterpreted its mandate to preserve and protect competition. The court disagreed.
The Court acknowledged that the FCC’s prohibition may not be necessary “if the market continues to evolve at such a rapid pace.” However, the court, in its 2-1 ruling, upheld the commission’s jurisdiction concerning cable programming access. The court also said it was reasonable for the FCC to conclude that the ban is still necessary based upon current marketplace conditions.
Cablevision said the FCC’s rules are “based on an outdated and obsolete view of the competitive landscape.” The operator is still reviewing its options in regards to a potential appeal.
Comcast indicated that it would not appeal, perhaps viewing the ruling as a soft condition they might cite in pursuit of their proposed merger with NBC Universal.
Stay tuned to NTCA’s Washington Report for more.
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