Tribune Co. Argues FCC Ownership Ban

By: Todd Shields Newspaper companies have long had a heavy cross to bear -- the federal cross-ownership ban, that is. But now, with Republicans in control of the Federal Communications Commision, it may be time to lay that burden down. A key milestone in a process that could lead to the abolition of the 26-year-old rule will be reached today, the deadline for the filing of arguments with the FCC by proponents and opponents of the repeal. Prospects are uncertain, with one opponent promising "hand-to-hand combat."

One heavy hitter filing papers today, Chicago's Tribune Co., gave E&P a sneak peek at its argument.

Tribune points out that it owns the WPIX-TV station in New York as well as Newsday in Melville, N.Y., an alignment that lets it put newspaper
reporter Edward Gargan on the air from Pakistan. Another pair of Tribune properties operates with far less synergy, however. The Fort Lauderdale-based South Florida Sun-Sentinel's Vanessa Bauza reports from Cuba for her newspaper, but may not appear on nearby Hollywood's WBZL-TV.

The FCC currently bars common ownership of a broadcast station and a daily newspaper in the same market. It keeps Bauza off the air in Florida, while a loophole lets Gargan on camera in New York. Tribune wants such uses to become routine. "This rule has frustrated an obviously better way of doing journalism," said Tribune Vice President Shaun M. Sheehan.

Not everybody agrees. Consumer groups, nervous that newspapers could manipulate and stultify public debate in cities where they dominate print and broadcast alike, want the rule to remain unchanged. "What we're doing here is tampering with the central nervous system of our democracy," said Jeff Chester, executive director of the Center for Digital Democracy, a nonprofit advocacy group in Washington.

Both sides will use their comments to lay down important markers before the FCC. In recent years, the commission has loosened a string of media ownership rules, for instance allowing owners to hold more than one TV station in a market. At the same time, federal courts and Congress have undermined or overturned rules limiting how many homes a cable TV company may serve and how many radio stations one owner can hold.

Newspaper companies hope cross ownership is next in the deregulatory line. "Newspapers should not be precluded from delivering local information to audiences in the way [audiences] want to receive that information," said John F. Sturm, president of the Newspaper Association of America ( NAA). "It could be in print, it could be in broadcast, or it could be online." In its filing, the NAA will argue that communities will get more local news from unfettered newspapers.

The regulation's opponents believe their prospects are improved by Republican leadership at the FCC. Chairman Michael K. Powell is openly skeptical of media ownership rules, questioning whether they serve their purpose of ensuring a diversity of viewpoints.

Congress for a time forbade the FCC from reviewing the rule. Then, in 1996, it mandated the periodic review of ownership rules. A decision is expected some time next year. And however the FCC votes, Congress could step in. In the closely divided Senate, Commerce Committee Chairman Ernest F. Hollings, D-S.C., has indicated he will defend the current rule. "This is hand-to-hand combat," said Chester, the advocacy group head. "We don't intend to let Powell eliminate the rule."

But the NAA's Sturm countered, "The FCC has to carry the burden of affirmatively demonstrating this rule serves the public interest. I don't think it can do that."