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Federal Communications Commission v. Prometheus Radio Project

Issues

Did the Third Circuit correctly vacate three Federal Communication Commission orders because the Commission did not adequately justify how those orders would impact minority media ownership?

This case asks the Supreme Court to decide whether the United States Court of Appeals for the Third Circuit erred when it vacated several Federal Communications’ Commission orders that, among other things, relaxed agency cross-ownership restrictions. Prometheus Radio Project, which challenges the FCC’s orders, claims that the FCC acted arbitrarily and capriciously because it did not consider how repealing cross-ownership restrictions would affect minority and female ownership of broadcast services. The FCC counters that courts owe the agency substantial deference when it considers multiple policy factors in its rulemaking capacity. The Supreme Court’s decision could affect the scope of judicial review of administrative actions, the integrity of local news coverage, and the diversity of broadcast media.

Questions as Framed for the Court by the Parties

Whether the U.S. Court of Appeals for the 3rd Circuit erred in vacating as arbitrary and capricious the Federal Communications Commission orders under review, which, among other things, relaxed the agency’s cross-ownership restrictions to accommodate changed market conditions.

The Federal Communications Commission (“FCC” or “Commission”) regularly issues orders to regulate broadcasting media. Prometheus Radio Project v. FCC at 573.

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