Federal Judge Richard Leon is not a household name, but he is one of the most powerful men in Washington. As senior judge of the U.S. District Court for the District of Columbia, Leon’s past decisions have altered the fate of some of America’s biggest companies, and his upcoming decision holds the key to the future of the media industry itself.
Leon made history in 2011 by approving the $38 billion Comcast-NBCU merger, positioning the new company as the largest cable and broadcast entity in the U.S. More importantly, his ruling established a hard-to-overlook legal precedent, which has influenced antitrust law and competition policy ever since.
Today, Judge Leon presides over yet another ground-breaking case with similar themes: United States v. AT&T and Time Warner. A mega merger valued at $108.7 billion, the deal seeks to marry a major content distributor (AT&T) with a leading video content producer (Time Warner). Beyond the litigants, the media and communications sector anxiously await the judge’s ruling, and with good reason.
First, the case marks the first time since the Carter administration (1977) that the U.S. Department of Justice has sued to block a vertical merger (i.e., between two companies that do not compete)…..
Continue reading “The Judge Who Holds Key to Future of Media”
It’s hard to imagine an issue in today’s media/telecom policy universe that has sparked more controversy or inspired more passion than the innocuous-sounding Net Neutrality. How could such a seemingly simple concept – that Internet access should be open to everyone and that services should be provided on a neutral basis without discrimination by type, price, speed, or quality – create such a firestorm?
One need look no further than the cover of this edition of Inside the FCC for the answer, or at least a major clue: “The Pros and Cons of Internet Regulation.” Many advocates of Net Neutrality believe this goal can’t be achieved without the regulatory hand of government exerting its grip on the Internet – and the more forcefully, the better. In contrast, other advocates of Net Neutrality believe it is a goal best achieved through the workings of the marketplace, and point to the successful operation of the Internet for years prior to any regulation.
Continue reading “Net Neutrality: How Did We Get Here and Where Are We Going?”
The “Tax Cuts and Jobs Act,” introduced amid great fanfare on Nov. 2, has now been passed by the U.S. House of Representatives along an essentially party-line vote. The Senate’s version, introduced Nov. 9, is still undergoing intense scrutiny as groups from every quarter weigh the bill’s proposed cuts in tax rates versus the elimination of certain deductions, credits, and other tax breaks.
As ideas for reforming the tax code were tossed around in recent months and even years, one proposal – or some variation of it – would surface from time to time. This was the idea that the tax deduction for business advertising expenses should be eliminated.
This has always been an ill-considered idea (as we shall discuss below), and thus we were relieved that it did not find its way into the new tax bills of either the House or Senate. But since these bills are only the opening salvos in the difficult battle to revise the tax code, it would be worthwhile to examine why this ad-related provision should not be a part of the measure that finally reaches the president’s desk.
Continue reading “Advertising Deductibility: For the Sake of Speech”
FCC Chairman Ajit Pai has proposed the most reasonable of actions: repealing or revising 40-year-old media ownership rules that long ago outlived any marginal usefulness they might’ve once had.
This should be a no-brainer. But, Washington being what it is, entrenched interests and politicians bent on maintaining the status quo for their own purposes have pilloried Pai for trying to do something that should’ve been done decades ago.
First, the facts. On Oct. 26, Chairman Pai released an Order on Reconsideration and Notice of Proposed Rulemaking. This proceeding seeks to accomplish the following:
- Eliminate the Newspaper/Broadcast Cross-Ownership Rule;
- Eliminate the Radio/Television Cross-Ownership Rule; and
- Revise the Local Television Rule to eliminate the Eight-Voices Test and to incorporate a case-by-case review provision in the Top Four Prohibition.
The proceeding would also seek to eliminate the attribution rule for television Joint Sales Agreements; retain the disclosure requirement for commercial television Shared Services Agreements; keep the Local Radio Ownership Rule; and create an incubator program to encourage new and diverse voices in the broadcast industry.
Continue reading “Repealing Media Ownership Regulations: It’s About Time”
Last week the Supreme Court granted a review of a Second Circuit decision upholding Microsoft’s defiance of a U.S. warrant for the production of e-mail messages, stored in a server housed in Ireland, of a man suspected of drug trafficking.
At its simplest, the legal battle between Microsoft and law enforcement is a debate over the reach and intent of a law passed many years (1986) before the coming of age of the Internet.
Microsoft and its allies argue that that law, the Stored Communications Act (SCA), was written at a time when Congress knew virtually nothing about the Internet and what it would become, and that furthermore there is no indication in the language of the law or congressional intent that suggests it could be applied extraterritorially. Continue reading “Reflections on the Microsoft/Ireland Case”
Free Speech Week is upon us. Or, as the headline of a story about the week written by Amy Mclean in Cablefax puts it: “What a Time for Free Speech Week.” What a time, indeed.
Just last week we saw the president raising the specter of whether the government should revoke television licenses based on the content of televised news coverage. The same president has wondered aloud (via Twitter, of course) whether the National Football League should have federal tax benefits revoked if owners continue to allow players to kneel during the National Anthem.
Speech on college campuses continues to be stifled in a variety of ways, from disinviting controversial guest speakers to relegating the expression of opinions by individuals to out-of-the-way “free speech zones.” On some campuses, students are supposed to be warned by professors before controversial topics are discussed in class, lest the students be traumatized. Continue reading “Free Speech Week: Much To Celebrate”
The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobgoblins, all of them imaginary. – H.L. Mencken
No regulatory issue in memory has been quite like that of “net neutrality.” A solution in search of a problem, bankrolled and of early and particular economic benefit to two companies, and a regulation that threatens to give government sway over an industry where it had none before, network neutrality by regulation defies logic, history, and the way the world works. Other than that it’s one terrific idea.
Net neutrality was conjured up by an alliance of left-wing activists, Democratic commissioners of the FCC, and certain Internet companies and their trade associations. The regulations that followed have been on a devolutionary path, such that what was merely bad (net neutrality under Title I) became, in 2015, very much worse – net neutrality under Title II. Continue reading “The Enduring Threat of Net Neutrality”
College campuses should be bastions of free speech. Today, they often seem to be the very places in American society where there is the least tolerance for controversial ideas. Unfortunately, much of the discussion of why this has occurred is based on the ad hoc experiences of a few campuses, including Berkeley, Claremont McKenna, and Middlebury that briefly gained national attention when lecturers were harassed or prevented from speaking by unruly and, occasionally, riotous crowds.
Systematic public opinion polling and anecdotal evidence suggests that the real problem of free expression on college campuses is much deeper than episodic moments of censorship: With little comment, an alternate understanding of the First Amendment has emerged among young people that can be called “the right to non-offensive speech.” This perspective essentially carves out an exception to the right of free speech by trying to prevent expression that is seen as particularly offensive to an identifiable group, especially if that collective is defined in terms of race, ethnicity, gender, or sexual identity.
Continue reading “The Real Crisis of Campus Free Expression”
As was the case a half-dozen years ago, PBS and NPR are again the subject of a contentious debate about their taxpayer funding, this time courtesy of President Trump. The problem with that debate, then and now, is that like so many policy disputes, the arguments employed oversimplify the facts and ignore the obvious. I wrote about this matter in 2011 in a piece published in the now-defunct app called The Daily. What follows is an update of that piece.
For years, Republicans and conservatives have accused NPR and PBS of ideological and political bias. Things came to a head in 2010 when NPR fired Juan Williams as a commentator for allegedly making anti-Muslim remarks, and NPR successfully solicited funding for local reporting from a foundation controlled by the uber liberal George Soros.
This perception of bias would be noteworthy enough even if these broadcasters were not financially supported by taxpayers, conditioned on explicit statutory language requiring objectivity and balance. Since, however, they are, the ubiquity and durability of this perception becomes very nearly miraculous. Surely it’s not easy to so thoroughly offend one of the two major parties that, in the House vote in 2011, virtually every Republican member voted to defund NPR » Read More
Maines is president of The Media Institute. The opinions expressed are his alone and not those of The Media Institute, its board, advisory councils, or contributors. The full version of this article appeared in The Hill on March 21, 2017.
Sunshine Week, a nationwide event taking place this week (March 12-18), is an annual reminder that access to government information is not something we can take for granted. In fact, prior to July 4, 1967, when the Freedom of Information Act (FOIA) took effect, access to federal government information was not a given at all. It took an act of Congress to counteract the tendency of government bureaucrats to over-classify, obfuscate, and procrastinate when it came to making even innocuous information available to the public.
Sunshine Week was created by the American Society of News Editors in 2005 and is now coordinated by that group in partnership with the Reporters Committee for Freedom of the Press. With these groups heading the effort, it would be easy to think of Sunshine Week as something primarily by and for journalists. Of course having access to public information is of great interest to journalists. That kind of access is essential if the press is to perform its role as a watchdog of government at all levels in this great democracy.
Continue reading “Sunshine Week: A Timely Celebration”