National Broadcasting Co. v. United States

Last updated

National Broadcasting Co. v. United States
Seal of the United States Supreme Court.svg
Argued February 10–11, 1943
Decided May 10, 1943
Full case nameNational Broadcasting Company, Incorporated, et al. v. United States, et al.
Citations319 U.S. 190 ( more )
63 S. Ct. 997; 87 L. Ed. 1344; 1943 U.S. LEXIS 1119; 1 Media L. Rep. 1965
Case history
PriorComplaints dismissed, 44 F. Supp. 688 (S.D.N.Y. 1942); probable jurisdiction noted, 62 S. Ct. 908 (1942); reversed, 316 U.S. 447 (1942); on remand, 47 F. Supp. 940 (S.D.N.Y. 1942); probable jurisdiction noted, 63 S. Ct. 267 (1942).
Holding
The Federal Communications Commission can issue regulations pertaining to associations between broadcast networks and affiliated stations.
Court membership
Chief Justice
Harlan F. Stone
Associate Justices
Owen Roberts  · Hugo Black
Stanley F. Reed  · Felix Frankfurter
William O. Douglas  · Frank Murphy
Robert H. Jackson  · Wiley B. Rutledge
Case opinions
MajorityFrankfurter, joined by Stone, Reed, Douglas, Jackson
DissentMurphy, joined by Roberts
Black and Rutledge took no part in the consideration or decision of the case.

National Broadcasting Co. v. United States, 319 U.S. 190 (1943), was a United States Supreme Court case in which the Court held that the Federal Communications Commission had the power to issue regulations pertaining to associations between broadcasting networks and their affiliated stations, otherwise known as "chain networks." [1] The case is important in the development of American administrative law.[ citation needed ]

Contents

The scope of authority held by an agency is determined by the agency's organic statute. Where Congress grants an agency the power to maintain and regulate an area guided by the "public interest, convenience, or necessity," such a grant of power can include the regulation of areas not explicitly contemplated by the organic statute, as long as they are within the scope of the purpose of the original statute.

Note: The approach in this case takes a much more expansive approach than the earlier case of ICC v. Cincinnati, New Orleans and Texas Pacific Railway Co. which provided for more limited powers for administrative agencies. Specifically, ICC held that regulative powers must be expressly granted by statute and not implied, while NBC held that the issuance of regulations, though not expressly granted, are an acceptable way for the agency to fulfill its statutory obligations to serve the "public interest, convenience, or necessity."

Facts and procedural posture

The FCC established Chain Broadcasting Regulations in 1941, which specifically governed the licensing and content of chain broadcasting stations. NBC sued to enjoin the enforcement of the regulations. The United States District Court for the Southern District of New York dismissed the complaint, ruling for the government, and NBC appealed.

The Supreme Court ultimately affirmed the dismissal of the complaint, ruling that the government had the power to enact and enforce the regulations in question.

Analysis

The FCC's authority stemmed from its organic statute, the Communications Act of 1934. The Act provided that:

It is the purpose of this Act, among other things, to maintain the control of the United States over all the channels of interstate and foreign radio transmission; and to provide for the use of such channels, but not the ownership thereof, by persons for limited periods of time, under licenses granted by Federal authority, and no such license shall be construed to create any right, beyond the terms, conditions, and periods of the license.

The Act also provided that the criterion governing the exercise of the Commission's license power is the "public interest, convenience, or necessity."

NBC argued that the FCC's power was limited to the technical aspects of radio transmission. The Court found that it was not, but instead "we are asked to regard the Commission as a kind of traffic officer, policing the wave lengths to prevent stations from interfering with each other."

NBC argued that the Act did not explicitly allow the Commission to develop regulations for chain broadcasting. The Court admitted this, but held that an explicit grant of power was not necessary in this context, because the field was new and dynamic, and that by granting power to the FCC, it intended "not niggardly but expansive powers."

NBC argued that the grant of power to the FCC was unconstitutionally vague, because it did not provide definite guidelines. The Court found that the guidelines were the service of "public interest, convenience, or necessity," and that those guidelines were constitutionally sufficient.

The Court concluded that the Chain Broadcasting Regulations were simply the particularization of the Commission's conception of the "public interest" sought to be safeguarded by Congress in enacting the Communications Act.

Context

The Opinion of the Supreme Court was not unanimous and it led to a conflict with an earlier decision in Federal Communications Commission v. Sanders Brothers Radio Station. [2] In Sanders Brothers, the FCC interpreted Supreme Court decisions concerning broadcasting to mean that potential economic injury to an existing licensee was not grounds for refusing to license a competitor. (This FCC interpretation remained in place from 1940 to 1958.)

The opinion of the Supreme Court was delivered by Felix Frankfurter with Justices Hugo Black and Rutledge taking no part in the discussion or decision. Justice Murphy offered a dissenting Opinion by stating that the Court was effectively giving the FCC a power to regulate networks which had not been given to the FCC by Congress. Murphy stated that;

... we exceed our competence when we gratuitously bestow upon an agency power which the Congress has not granted. Since that is what the Court in substance does today, I dissent. [3]

The decision effectively gave the FCC power to regulate the networks. As a result of this 1943 decision, NBC was forced to sell one of its networks and it was this action which then led to the creation of the American Broadcasting Company (ABC).

See also

Related Research Articles

<span class="mw-page-title-main">Federal Communications Commission</span> Independent U.S. government agency

The Federal Communications Commission (FCC) is an independent agency of the United States government that regulates communications by radio, television, wire, satellite, and cable across the United States. The FCC maintains jurisdiction over the areas of broadband access, fair competition, radio frequency use, media responsibility, public safety, and homeland security.

<span class="mw-page-title-main">Federal Radio Commission</span> Former government agency of the United States (1927–33)

The Federal Radio Commission (FRC) was a government agency that regulated United States radio communication from its creation in 1927 until 1934, when it was succeeded by the Federal Communications Commission (FCC). The FRC was established by the Radio Act of 1927, which replaced the Radio Act of 1912 after the earlier law was found to lack sufficient oversight provisions, especially for regulating broadcasting stations. In addition to increased regulatory powers, the FRC introduced the standard that, in order to receive a license, a radio station had to be shown to be "in the public interest, convenience, or necessity".

<span class="mw-page-title-main">Communications Act of 1934</span> 1934 U.S. federal law creating the Federal Communications Commission (FCC)

The Communications Act of 1934 is a United States federal law signed by President Franklin D. Roosevelt on June 19, 1934, and codified as Chapter 5 of Title 47 of the United States Code, 47 U.S.C. § 151 et seq. The act replaced the Federal Radio Commission with the Federal Communications Commission (FCC). It also transferred regulation of interstate telephone services from the Interstate Commerce Commission to the FCC.

United States v. Southwestern Cable Co., 392 U.S. 157 (1968), is a case in the development of American administrative law.

United States federal administrative law encompasses statutes, regulations, rules, common law rulings, and directives issued by the Office of Information and Regulatory Affairs in the Executive Office of the President, that together define the extent of powers and responsibilities held by administrative agencies of the United States government. The executive, legislative, and judicial branches of the U.S. federal government cannot always directly perform their constitutional responsibilities. Specialized powers are therefore delegated to an agency, board, or commission. These administrative governmental bodies oversee and monitor activities in complex areas, such as commercial aviation, medical device manufacturing, and securities markets.

<span class="mw-page-title-main">Radio Act of 1927</span> Former United States radio law from 1927 to 1934

The Radio Act of 1927 was signed into law on February 23, 1927. It replaced the Radio Act of 1912, increasing the federal government's regulatory powers over radio communication, with oversight vested in a newly created body, the Federal Radio Commission. It also was the first legislation to mandate that stations had to show they were "in the public interest, convenience, or necessity" in order to receive a license. The Act was later replaced by the Communications Act of 1934.

National Cable & Telecommunications Association v. Brand X Internet Services, 545 U.S. 967 (2005), was a United States Supreme Court case in which the court held that decisions by the Federal Communications Commission on how to regulate Internet service providers are eligible for Chevron deference, in which the judiciary defers to an administrative agency's expertise under its governing statutes. While the case concerned routine regulatory processes at the FCC and applied to interpretations of the Communications Act of 1934 and Telecommunications Act of 1996, the ruling has become an important precedent on the matter of regulating network neutrality in the United States.

<span class="mw-page-title-main">Cable Communications Policy Act of 1984</span> Act of United States Congress

The Cable Communications Policy Act of 1984 was an act of Congress passed on October 30, 1984 to promote competition and deregulate the cable television industry. The act established a national policy for the regulation of cable television communications by federal, state, and local authorities. Conservative Senator Barry Goldwater of Arizona wrote and supported the act, which amended the Communications Act of 1934 with the insertion of "Title VI—Cable Communications". After more than three years of debate, six provisions were enacted to represent the intricate compromise between cable operators and municipalities.

Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837 (1984), was a landmark decision of the United States Supreme Court that set forth the legal test for when U.S. federal courts must defer to a government agency's interpretation of a law or statute. The decision articulated a doctrine now known as "Chevron deference". Chevron deference consists of a two-part test that is deferential to government agencies: first, whether Congress has spoken directly to the precise issue at question, and second, "whether the agency's answer is based on a permissible construction of the statute."

Turner Broadcasting v. Federal Communications Commission, 512 U.S. 622 (1994), is the first of two United States Supreme Court cases dealing with the must-carry rules imposed on cable television companies. Turner Broadcasting v. Federal Communications Commission (II), 520 U.S. 180 (1997) was the second. Turner I established that cable television companies were indeed First Amendment speakers but didn't decide whether the federal regulation of their speech infringed upon their speech rights. In Turner II the court decided that the must-carry provisions were constitutional.

George W. Bush & Sons Co. v. Malloy, 267 U.S. 317 (1925), was a decision by the United States Supreme Court, which held that the state statute under which the Maryland Public Service Commission (PSC) issued certificates of public convenience and necessity to common carriers engaged in interstate commerce violated the Commerce Clause of the United States Constitution.

In Pacific Gas & Electric Co. v. State Energy Resources Conservation & Development Commission, 461 U.S. 190 (1983), the United States Supreme Court held that a state statute regulating economic aspects of nuclear generating plants was not preempted by the federal Atomic Energy Act of 1954. The case provides a framework that has guided other cases involving preemption of federal authority.

Broadcasting in the United States began with experiments with wireless transmission during the 19th century, with varying degrees of success. These transmissions were initially by radio hobbyists fascinated with the technology. Once techniques were perfected, radio became a necessity for military and commercial users alike. Eventually, broadcasting would come to have a major impact throughout the country. Growth divided television broadcasting into several genres, such as fiction, news, sports, and reality television. Cable television provided more channels, especially for entertainment. By the late 20th century radio (sound) broadcasting had similarly divided, with stations specializing in a particular musical genre, or news or sports.

Media cross-ownership is the common ownership of multiple media sources by a single person or corporate entity. Media sources include radio, broadcast television, specialty and pay television, cable, satellite, Internet Protocol television (IPTV), newspapers, magazines and periodicals, music, film, book publishing, video games, search engines, social media, internet service providers, and wired and wireless telecommunications.

<span class="mw-page-title-main">Natural Gas Act of 1938</span>

The Natural Gas Act of 1938 was the first occurrence of the United States federal government regulating the natural gas industry. It was focused on regulating the rates charged by interstate natural gas transmission companies. In the years prior to the passage of the Act, concern arose about the monopolistic tendencies of the transmission companies and the fact that they were charging higher than competitive prices. The passage of the Act gave the Federal Power Commission (FPC) control over the regulation of interstate natural gas sales. Later on, the FPC was dissolved and became the Federal Energy Regulatory Commission (FERC) pursuant to a different act. FERC continues to regulate the natural gas industry to this day.

Minority ownership of media outlets in the United States is the concept of having ownership of media outlets to reflect the demographic population of the area which the media serves. This is to help ensure that media addresses issues that are of concern to the needs and interests of the local population.

Radio regulation in the United States was enforced to eliminate different stations from broadcasting on each other's airwaves. Regulated by the Federal Communications Commission, standardization was encouraged by the chronological and economic advances experienced by the United States of America. Commenced in 1910, before the Communications Act of 1934 was passed, the Federal Radio Commission was the first organization established to control the functioning of radio as a whole through the Commerce Clause. Airwaves run across interstate and international waters, leading to some form of regulation. As years progressed, deregulation was strongly encouraged to provide a little independence from the government.

CBS, Inc vs. FCC is a 1981 United States Supreme Court decision finding that the Federal Communications Act of 1934 created a new, individual right to broadcast access for candidates for federal office. Under this decision broadcast media were found to have an obligation to allow any legally qualified federal candidate running for public office to purchase network time under section 312(a)(7) of the 1976 amendment to the Communications Act.

Nixon v. Missouri Municipal League, 541 U.S. 125 (2004), is a U.S. Supreme Court case decided on March 24, 2004. The case concerned the Federal Communications Commission’s ability to preempt state law under § 253(a) of the Telecommunications Act of 1996.

Federal Communications Commission v. Sanders Brothers Radio Station, 309 U.S. 470 (1940), was an early precedent on the enforcement of broadcasting law in the United States. The Supreme Court held that when the Federal Communications Commission (FCC) makes spectrum allocation decisions regarding the use of broadcast frequencies by radio stations, such decisions should be made to serve the public interest, convenience, and necessity as defined by the Communications Act of 1934. Consequently, such decisions by the FCC do not need to consider the profitability or business interests of the companies assigned such frequencies, or those of their competitors.

References

  1. NBC, Inc. v. United States , 319 U.S. 190 (1943).
  2. FCC v. Sanders Brothers Radio Station , 309 U.S. 470 (1940).
  3. NBC, Inc., 319 U.S. at 228 (Murphy, J., dissenting).