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US: Appeals court upholds FCC ruling that limits local cable price

By  |  July 9, 2017

The commission determined that the vast majority of operators face “effective competition” from satellite and telco companies. That so-called “rebuttable presumption” stripped local officials of the right from the 1992 Cable Television Consumer Protection and Competition Act to regulate prices where there’s insufficient competition.

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    They can regain the ability to set rates if they can show that there’s too little competition in their particular markets.

    The National Association of Broadcasters and the National Association of Telecommunications Officers and Advisors challenged the FCC ruling.

    They argued that the law empowers local officials to regulate rates unless an operator demonstrates that there’s meaningful competition in the market. The FCC, they said, went too far by using national data to shift the burden of proof.

    But the Appeals Court found that the FCC “reasonably interpreted the Communications Act.” It also ruled that the FCC could justify its rule on the grounds that it would make the process more efficient.

    Since the 1992 Cable Act, “competition in the video marketplace has increased dramatically,” he said in 2015. “Direct broadcast satellite providers, like DirecTV and Dish Network, now have a ubiquitous nationwide presence providing competition in virtually all markets.”

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