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47 U.S.C. § 533Ownership restrictions

submitted 92 years ago by Pub. L. 98-549 to r/title-47-TELECOMMUNICATIONS · 871 words · no verdicts yet

in plain englishAI-generated · not legal advice

A cable operator usually cannot hold a multichannel multipoint distribution license in its own franchise area. The Commission may limit how many cable subscribers or channels one owner controls. States cannot block cable ownership just because of ties to other media.

(a) Cable operator holding license for multichannel distribution or offering satellite service. A cable operator cannot hold a license for multichannel multipoint distribution service, and cannot offer satellite master antenna television service separately from its franchised cable service, in any part of the area its cable system serves. The Commission (1) must waive this rule for multichannel multipoint distribution services and satellite master antenna television services that a cable operator already owned as of October 5, 1992; (2) may waive it further, as far as needed to make sure all major parts of a franchise area can get video programming; and (3) cannot apply this rule to a cable operator in an area where the operator faces "effective competition" as defined under section 543(l) of this title. (b) Repealed. This subsection was repealed by Public Law 104–104, in 1996. (c) Promulgation of rules. The Commission may write rules about who can own or control cable systems when that person also owns or controls other mass-communications media serving the same community. (d) Regulation of ownership by States or franchising authorities. A state or franchising authority cannot ban someone from owning or controlling a cable system just because that person also owns or controls other mass-communications media. But a state or franchising authority can still ban someone from owning a cable system in its area (1) because that person already owns or controls another cable system there, or (2) if the state or authority decides that letting them acquire the system would eliminate or reduce competition in delivering cable service there. (e) Holding of ownership interests or exercise of editorial control by States or franchising authorities. (1) A state or franchising authority may own part of a cable system, subject to paragraph (2). (2) But if a state or franchising authority owns part of a cable system, it cannot control the content of any cable service on that system — except programming on channels set aside for education or government use — unless that control is exercised through a separate entity, not the franchising authority itself. (f) Enhancement of effective competition. (1) To boost competition, within one year of October 5, 1992, the Commission had to hold a proceeding to (A) set reasonable limits on how many cable subscribers one person can reach through cable systems they own or have a real interest in; (B) set reasonable limits on how many channels on a system one video programmer, if the cable operator has an interest in it, can occupy; and (C) consider whether to limit how much multichannel video distributors can also create or produce video programming themselves. (2) In writing these rules, the Commission had to, among other goals, (A) make sure no cable operator or group of operators can unfairly block the flow of programming to consumers; (B) make sure operators tied to programmers don't favor those programmers in choosing what to carry, or unreasonably block other programmers' access; (C) account for the cable industry's market structure and ownership patterns; (D) account for benefits that might come from more ownership or control; (E) keep the rules responsive to a changing communications market; (F) not bar operators from serving rural areas that had no service before; and (G) not block the growth of diverse, high-quality video programming. (g) Combination of interests under prior law. This section does not undo any combination of interests a person already held on July 1, 1984, as long as holding those interests was legal under federal or state law at that time. (h) "Media of mass communications" defined. For this section, "media of mass communications" means the same thing it means under section 309(i)(3)(C)(i) of this title.
the actual law source: uscode.house.gov ↗public domain
(a) Cable operator holding license for multichannel distribution or offering satellite service

It shall be unlawful for a cable operator to hold a license for multichannel multipoint distribution service, or to offer satellite master antenna television service separate and apart from any franchised cable service, in any portion of the franchise area served by that cable operator’s cable system. The Commission—

(1)

shall waive the requirements of this paragraph for all existing multichannel multipoint distribution services and satellite master antenna television services which are owned by a cable operator on October 5, 1992;

(2)

may waive the requirements of this paragraph to the extent the Commission determines is necessary to ensure that all significant portions of a franchise area are able to obtain video programming; and

(3)

shall not apply the requirements of this subsection to any cable operator in any franchise area in which a cable operator is subject to effective competition as determined under section 543(l) of this title.

(b) Repealed. Pub. L. 104–104, title III, § 302(b)(1), Feb. 8, 1996, 110 Stat. 124

(c) Promulgation of rules

The Commission may prescribe rules with respect to the ownership or control of cable systems by persons who own or control other media of mass communications which serve the same community served by a cable system.

(d) Regulation of ownership by States or franchising authorities

Any State or franchising authority may not prohibit the ownership or control of a cable system by any person because of such person’s ownership or control of any other media of mass communications or other media interests. Nothing in this section shall be construed to prevent any State or franchising authority from prohibiting the ownership or control of a cable system in a jurisdiction by any person (1) because of such person’s ownership or control of any other cable system in such jurisdiction; or (2) in circumstances in which the State or franchising authority determines that the acquisition of such a cable system may eliminate or reduce competition in the delivery of cable service in such jurisdiction.

(e) Holding of ownership interests or exercise of editorial control by States or franchising authorities
(1)

Subject to paragraph (2), a State or franchising authority may hold any ownership interest in any cable system.

(2)

Any State or franchising authority shall not exercise any editorial control regarding the content of any cable service on a cable system in which such governmental entity holds ownership interest (other than programming on any channel designated for educational or governmental use), unless such control is exercised through an entity separate from the franchising authority.

(f) Enhancement of effective competition
(1)

In order to enhance effective competition, the Commission shall, within one year after October 5, 1992, conduct a proceeding—

(A)

to prescribe rules and regulations establishing reasonable limits on the number of cable subscribers a person is authorized to reach through cable systems owned by such person, or in which such person has an attributable interest;

(B)

to prescribe rules and regulations establishing reasonable limits on the number of channels on a cable system that can be occupied by a video programmer in which a cable operator has an attributable interest; and

(C)

to consider the necessity and appropriateness of imposing limitations on the degree to which multichannel video programming distributors may engage in the creation or production of video programming.

(2)

In prescribing rules and regulations under paragraph (1), the Commission shall, among other public interest objectives—

(A)

ensure that no cable operator or group of cable operators can unfairly impede, either because of the size of any individual operator or because of joint actions by a group of operators of sufficient size, the flow of video programming from the video programmer to the consumer;

(B)

ensure that cable operators affiliated with video programmers do not favor such programmers in determining carriage on their cable systems or do not unreasonably restrict the flow of the video programming of such programmers to other video distributors;

(C)

take particular account of the market structure, ownership patterns, and other relationships of the cable television industry, including the nature and market power of the local franchise, the joint ownership of cable systems and video programmers, and the various types of non-equity controlling interests;

(D)

account for any efficiencies and other benefits that might be gained through increased ownership or control;

(E)

make such rules and regulations reflect the dynamic nature of the communications marketplace;

(F)

not impose limitations which would bar cable operators from serving previously unserved rural areas; and

(G)

not impose limitations which would impair the development of diverse and high quality video programming.

(g) Combination of interests under prior law

This section shall not apply to prohibit any combination of any interests held by any person on July 1, 1984, to the extent of the interests so held as of such date, if the holding of such interests was not inconsistent with any applicable Federal or State law or regulations in effect on that date.

(h) “Media of mass communications” defined

For purposes of this section, the term “media of mass communications” shall have the meaning given such term under section 309(i)(3)(C)(i) of this title.

Source credit: (June 19, 1934, ch. 652, title VI, § 613, as added Pub. L. 98–549, § 2, Oct. 30, 1984, 98 Stat. 2785; amended Pub. L. 102–385, § 11, Oct. 5, 1992, 106 Stat. 1486; Pub. L. 103–414, title III, § 303(a)(22), Oct. 25, 1994, 108 Stat. 4295; Pub. L. 104–104, title II, § 202(i), title III, §§ 302(b)(1), Feb. 8, 1996, 110 Stat. 112, 124.)

history & why it existsrecord from the source credit
  • 1934Enacted · Pub. L. 98-549 · 98 Stat. 2785
  • 1992Amended · Pub. L. 102-385 · 106 Stat. 1486
  • 1994Amended · Pub. L. 103-414 · 108 Stat. 4295
  • 1996Amended · Pub. L. 104-104 · 110 Stat. 112, 124

A history note hasn’t been published yet. The record shows enactment by Pub. L. 98-549 on 1934-06-19.

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