Foreign Adversary Ownership and Control Proposal Reconsideration Requested by NAB to FCC
The Federal Communications Commission (FCC) has proposed new rules aimed at gathering information from broadcast licensees about foreign adversary ownership or control. The proposed regulations are a response to concerns about potential threats from entities owned or controlled by foreign governments considered adversaries.
The FCC's notice specifically addresses how to receive and certify information from radio and TV broadcasters. It acknowledges that broadcast ownership structures can be complex, with some broadcasters having experienced ownership changes involving private equity funds and intricate financial structures.
Under the proposed rules, broadcasters would be required to certify that they are not directly or indirectly "owned by, controlled by, or subject to the jurisdiction of a foreign adversary." The commission currently allows broadcasters to lease all or part of their programming hours to outside parties through time brokerage or local marketing agreements, as long as the licensee retains control over the station.
The FCC's proposal is intended to fill gaps in its existing rules and provide a comprehensive view of threats from entities owned or controlled by foreign governments considered adversaries. The White House has designated China, Russia, Iran, North Korea, Cuba, and the Maduro Regime in Venezuela as foreign adversaries.
The NAB, however, has filed comments opposing the FCC's proposal, stating that there is no proof of a need for a dramatic change in the FCC's rules. Instead, the NAB has focused on opposing broadcast ownership caps and limitations, advocating for the elimination of national ownership limits to allow broadcasters to compete more effectively against streaming platforms and tech giants.
The NAB suggests that the FCC gather foreign adversary control information from broadcast licensees by more efficient means, such as limiting the certification obligation to those licensees that have disclosable foreign adversary control. They argue that requiring thousands of licensees to submit certifications makes no sense, given the absence of evidence that foreign adversary control of radio and television licensees is or has been a problem.
The NAB also urges the commission to increase the thresholds applicable to "dominant minority" interests, as the proposed thresholds are deemed too low to realistically reflect an ability to control a regulated entity. They also claim that the commission's streamlined revocation process proposed in the NPRM, which could strip authorizations from licensees that submit false certifications of no foreign adversary control, violates federal law.
Reply comments on the FCC's proposal (GN Docket No. 25-166) are due on Aug. 19. The NAB suggests adopting definitions consistent with existing requirements for disclosing interest holders to streamline the process of gathering information for certifications. The commission requires radio and television stations to broadcast a disclosure for any programming that is provided by a foreign governmental entity.
In conclusion, the FCC's proposal for foreign adversary ownership disclosure by broadcasters aims to strengthen national security by providing a comprehensive view of threats from entities owned or controlled by foreign governments considered adversaries. The NAB, however, has raised concerns about the practicality and necessity of the proposed rules, advocating for more efficient means of gathering information and increased thresholds for "dominant minority" interests. The final decision will be made after the FCC considers the reply comments submitted by Aug. 19.
- The FCC's proposed rules for foreign adversary ownership disclosure include a requirement for radio broadcasters to certify that they are not subject to the control of foreign adversaries, acknowledging the complex ownership structures some broadcasters may have, involving even private equity funds and intricate financial structures.
- The NAB, in response to the FCC's proposal, has advocated for more efficient means of gathering foreign adversary control information from broadcast licensees, suggesting the use of definitions consistent with existing requirements for disclosing interest holders, as well as increasing the thresholds applicable to "dominant minority" interests.
- The FCC's proposal also includes provisions for broadcasters, such as radio and TV stations, to continue leasing all or part of their programming hours to outside parties, as long as the licensee retains control over the station, while also requiring broadcasts of disclosures for any programming provided by a foreign governmental entity.
