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The U.S. Supreme Court issued a significant decision regarding the Administrative Procedure Act’s (“APA”) arbitrary-and-capricious standard. In
FCC v. Prometheus Radio Project, the Court upheld a decision by the Federal Communications Commission (“FCC”) to repeal or modify three rules governing the ownership of broadcast media. The three rules had limited the number of radio stations, television stations, and newspapers that a single entity could own in a given market. Under the Federal Communications Act, the FCC had to consider the public interest before changing its rules. The FCC considered the effects of its rules on competition, localism, and viewpoint diversity before changing the rules in 2017. And the FCC found that changing the rules was not likely to harm minority and female ownership of media sources.
US Supreme Court Unanimously Sides With Facebook, Dashes Hopes for Class-Action Suit on Text Alerts
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Adam KlasfeldApr 1st, 2021, 11:08 am
Former FCC Chairman Ajit Pai
Over the howls of protest of nearly half of U.S. states, the Supreme Court unanimously sided with the Federal Communications Commission on Thursday in a ruling finding old regulations limiting cross-ownership of media outlets obsolete. The advocacy group Prometheus Radio Project feared that the shelving the former restrictions, an action undertaken by the FCC’s Trump-appointed ex-chairman
Ajit Pai, would weaken ownership and viewpoint diversity in the press.
Prometheus had early success in the Third Circuit Court of Appeals, which vacated the FCC’s order. But the Supreme Court had the final word, with all nine justices finding that the Commission’s decision to strike the old regulations was not arbitrary and capricious.