Summary Box: Appeals court rejects FCC rule that capped cable TV market share
By APFriday, August 28, 2009
Summary Box: Court ends cap on cable market share
CAP OFF: A federal appeals court overturned the FCC’s rule that said a cable TV company could not serve more than 30 percent of the nation’s subscribers. The largest cable company, Comcast, which has 25 percent share, sued to block the rule.
DEJA VU: Twice before, the same limit was thrown out by the courts. Yet the FCC imposed it again in 2007, in an attempt to keep any one cable provider from gaining too much power over cable channels. The court said Friday that the FCC failed to properly account for the emergence of pay TV services from satellite and phone companies.
WHAT’S NEXT: The FCC, which now is under different leadership than when the cap was imposed, said it would review the decision. An advocacy law firm that joined the FCC in defending the cap said a Supreme Court appeal might be warranted.
