WASHINGTON D.C.—Top GOP members of Senate and House Committees overseeing the FCC have sent a letter to FCC chair Jessica Rosenworcel criticizing the agencies handling of Standard General’s proposed acquisition of Tegna, saying its actions have “raised questions about the Commission’s fairness.
The letter was sent by Representative Cathy McMorris Rodgers, who is the Chair of the E&C Committee in the House and Senator Ted Cruz, who is ranking member of the Senate Commerce Committee. These two Committees are responsible for Congressional oversight of the FCC.
The two legislators also laid out a list of 14 detailed questions regarding the Media Bureau's actions and FCC process and have demanded responses within the next two weeks.
“Almost three decades ago, Congress charged the Federal Communications Commission with the authority to `promote competition and reduce regulation’ in the communications marketplace,” the letter noted. “That mandate should be carried out in a manner that is accountable and fair to all parties. However, the Commission’s review of Standard General’s proposed $5.4 billion acquisition of TV station operator Tegna Inc. appears to violate those principles.”
The letter was prompted by a decision by the FCC’s Media Bureau to refer the deal to an Administrative Law Judge, which would effectively kill the deal. “In the past 30 years, no broadcast license transfer has gone through the hearing process in less than 358 days (the average time is 799 days),” the legislators complained. “With the deadline for financing of the Standard General-TEGNA deal expiring on May 22, 2023, the Media Bureau’s action effectively kills the transaction.”
The letter also criticizes the FCC for not holding a full vote on the decision and argued that the Media Bureau “relied on novel interpretations of the Commission’s public interest standard and appeared to ignore—if not contradict—the Commission’s precedent that `an increase in retransmission consent rates, by itself’ does not constitute a public interest harm.”
“Given these departures from precedent, it is no surprise that the decision has raised questions about the Commission’s fairness,” the letter complained. “According to numerous public reports, outside interests pushed Commission officials to block this transaction in order to pave the way for an alternative buyer, namely Byron Allen. For example, the Wall Street Journal reported that Mr. Allen’s Allen Media Group had previously tried, unsuccessfully, to acquire TEGNA in the fall of 2021. Coincidentally, Mr. Allen is a major Democratic donor....Some have observed that the well-connected Mr. Allen is `the most likely beneficiary if the Standard General deal falls through.'”
The letter also lays out a series of detailed questions for the FCC and requested a variety of documents.
The full list of questions can be found here.
