Congress OK's media ownership cap

WASHINGTON -- Media companies will be able to own television stations that reach 39 percent of the American viewing public under the big spending bill approved yesterday by Congress.

The Federal Communications Commission had voted to allow the companies to reach 45 percent of viewers, but Congress then voted to keep the current 35 percent limit. Under a veto threat from President Bush, lawmakers agreed to the 39 percent cap. The bill also takes the power to change the cap away from the FCC.

The 39 percent limit allows two media giants -- Viacom Inc., owner of CBS and UPN, and News Corp., owner of Fox -- to keep all their television stations. Through mergers and acquisitions, both had exceeded the 35 percent cap.

Viacom and News Corp. spent a combined $5.5 million on lobbying between Jan. 1, 2002, and June 30, 2003, and $2.3 million on campaign contributions for the 2002 and 2004 elections.

Bush has received more in campaign donations from the broadcast industry than any other federal candidate since Jan. 1, 2003. He took in $158,450 -- more than 10 percent of the industry's $1.4 million in donations for the 2004 campaign, according to the Center for Responsive Politics, a nonpartisan research group.

There also is a legal battle over media ownership rules.

A federal appeals court in Philadelphia temporarily blocked the higher cap and suspended other FCC-adopted ownership changes, including rules making it easier for companies to own newspapers and broadcast stations in the same community.

Opponents of the higher cap said they regretted Congress's action but would work with lawmakers to overturn the FCC's other media ownership rules.