Document: 450 U.S. 582 101 S.Ct. 1266 67 L.Ed.2d 521 FEDERAL COMMUNICATIONS COMMISSION et al., Petitioners,v.WNCN LISTENERS GUILD al. INSILCO BROADCASTING CORPORATION Petitioners, v. WNCN AMERICAN COMPANIES, INC. NATIONAL ASSOCIATION OF BROADCASTERS Nos. 79-824 to 79-827. Argued Nov. 3, 1980. Decided March 24, 1981. Syllabus Sections 309(a) and 310(d) of the Communications Act 1934 (Act) empower Federal Commission (FCC) grant an application for renewal or transfer a radio broadcast license only if it determines that "the public interest, convenience, necessity" will be served thereby. In implementation these provisions, FCC, pursuant its rulemaking authority, issued Policy Statement concluding, with respect ruling on applications transfer, interest is best by promoting diversity in station's entertainment formats through market forces competition among broadcasters review applicant format changes was not compelled Act's language history, would advance radio-listening public's welfare, deter innovation programming. On respondent citizen groups' petition Statement, Court Appeals held violated Act, concluding FCC's reliance develop programming unreasonable interpretation public-interest standard, certain circumstances FCC required regard change as substantial material fact requiring hearing determine whether interest. Held : The inconsistent constitutionally permissible means implementing standard. Pp. 593-604. (a) has provided rational explanation conclusion method formats. It assessed benefits harm likely flow from Government concluded statutory duties are fulfilled attempting oversee changes. 595-596. (b) when based weighing competing policies, set aside Appeals, policies under 'public interest' standard task Congress delegated first instance." National Citizens Committee Broadcasting, 436 775, 810, 98 2096, 2119, 56 697. Here, position reflects reasonable accommodation policy avoiding unnecessary restrictions licensee discretion. P. 596. (c) consistent legislative history traditional view forces. 597-599. (d) does conflict First Amendment rights listeners, since seeks further interests listening whole individual listeners right have abandonment their favorite programs. 603-604. 197 U.S.App.D.C. 319, 610 F.2d 838, reversed remanded. David J. Saylor, Washington, D. C., petitioners, Communication United States. Timothy B. Dyk, petitioners 79-826 Kristin Booth Glen, New York City, respondents Listeners Guild, Inc., Wilhelmina Reuben Cooke, respondents, Office Church Christ, Justice WHITE delivered opinion Court. 1 1934, 48 Stat. 1064, amended, 47 U.S.C. § 151 seq. (Act), transfer1 thereby.2 issue before us there which must past anticipated rules license. Commission's present may rely promote thus serve 2 This arose when, informal "Policy Statement" therefore factor should considered transfer. Respondents, number groups interested fostering preserving particular formats, petitioned District Columbia Circuit. That court Act. We reverse decision Appeals. 3 * Beginning 1970, series cases involving transfers,3 Circuit gradually developed criteria determining "public-interest" requires hold proposed formats.4 Noting aim "to secure maximum all people States," Broadcasting Co. States, 319 190, 217, 63 997, 1009, 87 L.Ed. 1344 (1943), ruled 1974 "preservation [that] otherwise disappear, although economically technologically viable preferred significant generally interest." Save WEFM 165 185, 207, 506 246, 268 (en banc). "substantial questions fact" (1) notice had precipitated "significant grumbling"; (2) segment population preferring too small accommodated available frequencies; (3) adequate substitute service area being abandoned;5 (4) unfeasible even station were managed efficiently.6 rejected choice left judgment licensee,7 stating contrary Act.8 4 January 1976, responded decisions undertaking inquiry into role reviewing changes.9 particular, sought comment better scrutiny competitive marketplace.10 5 Following comment, Statement11 authority Act.12 welfare public, pose administrative problems, support position, quoted Sanders Brothers Radio Station, 309 470, 475, 60 693, 697, 84 869 (1940): "Congress intended leave business broadcasting where found it, permit . survive succumb according his ability make programs attractive public."13 also emphasized broadcaster common carrier14 subjected burden similar carrier's obligation continue provide convenience necessity.15 6 practical considerations well supported reluctance regulate Such regulation require categorize prior subsequent occurred; "unique";16 weigh detriment resulting unique against benefit change. difficulty objectively evaluating strength listener preferences, comparing desire within type broader range program assessing financial feasibility format.17 7 Finally, explained why believed producing First, large markets, already produced "an almost bewildering array diversity" formats.18 Second, allocation accommodates listeners' desires given produces variety formats.19 Third, far more flexible than governmental responds quickly changing tastes. Therefore, mechanism preference supervision this conducive either [or] satisfied listeners."20 8 sitting en banc, construed applied court's decisions. 838 (1979). questioned rationally impartially re-examined position21 particularly criticized failure disclose staff study effectiveness Statement.22 then criticisms doctrine. conceding lead diversification imperfectly preferences23 statutorily obligated whenever "strong prima facie evidence broken down." Id., at 332, F.2d, 851. stated problems posed doctrine insurmountable. Hearings cases, could cope such classifying adopting "a classification schema." 334, 853. observed demonstrated innovative programming.24 directed engage censorship impose carrier obligations licensees: did authorize interfere choices force retention existing format; merely power consider deciding U.S.App.D.C., 332-333, 851-852. 9 Although possessed neither expertise nor area, asserted "law," "policy,"25 disproved factual assumptions underlying doctrine.26 Accordingly, declared "unavailing no effect." 339, 858.27 II 10 Rejecting With due respect, however, we unconvinced Appeals' aside. 11 ground define term "public necessity."28 characterized supple instrument exercise discretion expert body charged carry out policy." Pottsville Co., 134, 138, 437, 439, 656 (1940). Broad casting goal U.S., S.Ct., 1010, granted broad how achieved. accordingly declined own views encouraging effective use Commission. 218, 1010. Similarly, 697 (1978), deemed widest possible dissemination information diverse sources both Amendment, id., 795, 2112, but noted permits promulgate "such regulations, law, necessary provisions [the Act],"29 general implement "so long consideration factors reasonable." 793, 2111.30 Furthermore, recognized sometimes rest prediction rather pure determinations. complete ultimate conclusions required, " 'a forecast direction future lies necessarily involves deductions knowledge agency.' "31 12 agree vast majority sufficient diversity. favors intervention deprived "unique" format, while content market, pointing many other stations attract who discontinued format. places great value emphasizes intraformat interformat convinced result believes 13 making judgments, forsaken pursue contrary, programming, balance major part predictions probable conduct licensees functioning assessment capacity determinations '[e]ven after relevant facts ha[d] been fully explored evidentiary hearing, Commission] assurance finally reached contribute satisfaction favored management.' F.C.C.2d 858, 865 (1976). assert marketplace achieve perfect correlation between preferences Rather, never achieved, alone accommodate varied tastes public. These institutional competence 14 Our opinions repeatedly regarding entitled judicial deference. See, e. g., supra; WOKO, 329 223, 229, 213, 216, 91 204 (1946). fulfilling responsibilities supra, 2119. As see harmony recognizing preserve journalistic public.32 15 precise us, reject proposal allocate percentage types programming.33 one bills submitted passage 192734 included provision comply priorities subject matter.35 eventually deleted border censorship.36 subsequently added section 1927 expressly prohibiting "interfer[ence] free speech communication."37 retained Act.38 read unequivocally express disfavor Commission, indication expected provides insufficient basis invalidating agency's construction 16 statute those execution followed unless compelling indications wrong ."39 Prior consistently licensee.40 1971, restated announced any reviewed light Preserve Voice Arts Atlanta, 141 109, 263, 267 (1970), articulated doctrine.41 1973, statement accompanying later challenged WEFM, Commissioners joined commitment "take extra hard look reasonableness deprive community source programming."42 However, approach "neither administratively tenable interest."43 apparent obliged modify conform doctrine, reasserted achieving III 17 contended carrying duty particularized determination every comes invariably relying forces, assumes Surely, argued, some so detrimental inflexible duties. But seek permission contemplated arises courses proceedings; approved, assume affirmatively requested 18 Under policy, without they operate imperfectly, reliably respond oversight end increasing approved Midwest Video Corp., 440 689, 699, 99 1435, 1441, 59 692 (1979), nevertheless vested much weight what pursued it. itself, course, specify 19 A underpinning conviction, rooted experience, turn presuming grasp, measure, elusive difficult involved acceptability To assess elimination Necessarily, take favor old new intensity preferences. effect judgments respects subjective measure approximately imperfect, responding inviting experimentation Those overturn do account considerations.44 20 complaints about nonentertainment formats.45 difference treatment pronounced seem. Even afforded selecting Thus, question [requiring hearing] raised appears abused acting unreasonably bad faith." Mississippi Authority Educational TV, 71 1296, 1308 note recently commercial structure industry. See Notice Inquiry Proposed Rulemaking, Matter Deregulation Radio, 73 457 re-examination, eliminated maintenance comprehensive logs, guidelines amount offer, formal requirements governing ascertainment needs, limiting time. 46 Fed.Reg. 13888 (1981) (to codified CFR Parts 0 73). 21 attach expressed our ultimately rests Statement. 22 decline prefers attempt behest disaffected listeners. Of alert consequences stand ready alter rule fully. States 23 "If time reveal Regulations, assumed act accordance obligations." 225, 1013. IV 24 Respondents contend affirmed because, violative conflicts receive suitable access social, political, esthetic, moral, ideas experiences." Red Lion 395 367, 390, 89 1794, 1806, 371 (1969). "fairness doctrine" violate enhanced values presentation vigorous debate controversial issues importance concern public." 385, 1804. observing promoted radio, imply grants satisfy listeners.46 Amendment.47 25 Contrary reversed, case remanded proceedings opinion. 26 So ordered. 27 MARSHALL, whom BRENNAN joins, dissenting. 28 §§ (Commission) approve assignment, finds necessity."1 Any party deny application, 309(d)(1), presented," 309(d)(2). my judgment, correctly limited circumstances, licensee's interest."2 I affirm insofar vacated Statement."3 29 At outset, point understanding very different Commission's.4 Both brief Court, insisted espoused "favor[s] system pervasive regulation,"5 'comprehensive, discriminating, continuing state surveillance.'6 contends enforcement "common carrier" imperfect government decree."7 Were accurate description join reversing below.8 actual features [its doctrine] scarcely visible Commission's] highly-colored portrait." 851 30 fact, accepted ordinarily "was alternative forces," "fully formats." Ibid. (Emphasis original.) strong down," ibid., suggested breakdown inferred "precipitate[s] outpouring protest," 323, 842, grumbling," ibid. "[n]o abandoned, endangered evidenced outcry protest, devotees few frequencies, financially viable." indicated situations record presents fact. 324, 843. 31 made clear play situations. Consequently, presented adopt ensure apply indiscriminately cases. 32 necessity," quarrel basic premise includes programming." 842.9 goals States." (1943).10 And long-established regulatory same time, acknowledged enjoys accomplish goal. (1978); supra. notes, ante, 595, largely behavior market. 33 sort competence. am willing disregarding interest" give individualized each application. powers Act,11 efforts requirement Storer 351 192, 76 763, 100 1081 (1956); 34 problem here, lacks flexibility regulations policies. imposes affirmative 1013, must, case, "exercise necessity.' completely forecloses possibility re-examine validity applies can conclusively function manner predicted indicates blindly occur shown misplaced, action outcome responsibilities. 35 Moreover, proceed complex areas intimately connected existence "safety valve" procedure allows agency exemptions special circumstances. E. I. du Pont de Nemours & Train, 430 112, 128, 97 965, 975, 51 (1977); Permian Basin Area Rate Cases, 390 747, 771-772, 88 1344, 1362-1363, 312 (1968); FPC Texaco 377 33, 40-41, 1105, 1109-1110, 112 (1964); 204-205, 771-772; 1005, WAIT 135 317, 321, 418 1153, 1157 (1969); American Airlines CAB, 123 310, 359 624 banc), cert. denied, 385 843, 73, 75 (1966); WBEN, Inc. 396 601, 618 (CA2), 393 914, 238, 200 (1968). For example, upheld Chain need administering rules. "Commission 'networks full opportunity, proper call attention reasons principle modified inapplicable.' 1005. concluded: 36 "The bind itself inflexibly licensing regulations. still If 37 upholding Multiple Ownership Rules allowed opportunity "full hearing" applicants "that waived amended." 205, 771.12 38 feature essential where, promotes forecasts definition lack support. admonished related context: 39 administration interest.' discharge promulgating which, overall perspective, establish situations, relieve implies commission re-study entire novo reconsider receives waiver rule. hand, rule, valid because objectives extended proposes undermine adjudged 1157. 40 compels show differs paradigm, thereby persuade Indeed, until published, resolved programming."13 delineate temper Perhaps advised defining Commission.14 endorse conclude invalidated omission procedure. 41 departure legal precedents; admissions here. concedes reflection preferences,15 reflected marketplace. examine early 1929, predecessor, adopted balanced schedule designed communities. Great Lakes F.R.C.Ann.Rep. 32, 34, rev'd grounds, 993 (D.C.Cir.), dism'd, 281 706, 50 467, 74 1129 (1929). famous "Blue Book,"16 published 1946, reaffirmed emphasis well-balanced duty, determinations, service."17 explained: 42 "It established themselves minorities population, less dominant needs most time."18 43 theme reiterated 1960 Program Statement,19 forth specific categories "major elements usually meet community,"20 necessity broadcaster's serving "tastes needs" local community.21 serves community, has, decreed children, going declare [children's] educate inform simply entertain."22 44 examining applications, claims children's programming,23 women children,24 Spanish-American community,25 ignored significance Negro community,26 residents area.27 submissions ranging summaries transcripts programs, met 45 There obvious inconsistency recognition described above sole instance pertain attempts explain exceptional drawing distinction suggests reviews then, argues fairness political 315, allow direct control areas, "is directing additional ignore viewpoints others community."28 "limited involvement decisionmaking news affairs"29 contrasted, pervasive, censorial nature regulation."30 presumably concludes distinguishing disagree. place, tries draw questionable. immediately apparent, falls "nonentertainment" side spectrum, decides category belongs. reason cannot Nothing prevents "directing material," ensuring complain ignored. important, anything various hesitated determination. devote "reasonable percentage" importance, coverage fair accurately reflect opposing views. broadcasts candidates federal nonfederal office. Law Political Cablecasting, 69 2209 (1978). examination nothing purported justification all, puzzled majority's policy. minimize postulating seem," 602. observation, accurate, beside point. What germane extent whereas 'it act[ed] faith,' (quoting (1979)), identical complaint indicated, 614-616, able offer satisfactory inconsistency. Nor find refuge claim [h]ad (1976), quoting Inquiry, 57 580, 586 true makes acceptable situation other. Much said suggestion spared "presuming factors" measuring 601. confronts "elusive acquired dealing 49 Since mandated seems appropriate briefly 'acute problem[s]' inherent render entirely speculative might produce."31 One principal rejecting "administratively fearful nightmare,"32 "enormous costs participants alike."33 oral argument counsel conceded 'administrative nightmare' 'exaggeration' 'very all' conclusion. 330, 849. merit hardly strengthens one's belief rationality decisionmaking. abandoned "administrative nightmare" nonetheless "intractable" regulation. insists meaningful impractical, impossible measured.34 discourage counterproductive. None merit. Broadcasters operated during years, yet unable period. aggressive developing format-doctrine regime.35 "evidence"— welcome contrast speculation—undermines disserve inhibit 52 classify overcome taxonomy imprecise margins, sustainable irrational."36 telling relied used industry practice.37 noted, somewhat ironic trouble "endorsing premised classifications make." Ibid.38 sure, courts sit second-guess assessments specialized agencies like speculations refuted record, persuaded deference due.39 53 defective guidance re-examination necessary. specifically, share, think vacated. 54 respectfully dissent. shall refer transfers assignments licenses "transfers." Title provides: "Subject section, determine, filed 308 title applies, granting and, upon matters officially notice, thereof, application." part: "No license, thereunder transferred, assigned, disposed manner, voluntarily involuntarily, directly indirectly, corporation holding person except finding thereby." three years. 307(d). 307(a), (d), 309(a). Section 309(d)(1) renewal, contain allegations "prima inconsistent" pleadings filed, presented, conducting hearing. 246 (1974) banc); Keep Progressive Rock 156 16, 478 926 (1973); Lakewood Service, 9, 919 Hartford 354, 467 408 (1972); Atlanta 263 (1970). "format doctrine," often "fine arts" classical music 203-204, 264-265. 19th-century 20th-century classified loss unquestionably lessen diversity." 204, n. 28, 265, 28. summarized below. 323-324, 842-843 logically applications. mid-term renewal. 29, 849, 29. 118, 272. 113, 267. 31, 31. 268, 34. warned review: "[F]ailure reasoned be, always, reversible error. No accepted." 934. Development re: Changes Entertainment Formats Broadcast Stations, 580 invited parties impact values. Memorandum Opinion Order, 858 (1976) (Policy Statement), reconsideration 66 78 (1977). 303(r) 303(r), requires, [m]ake prescribe conditions, Act]." naturally compete virtually form available. markets 861. formats: "Our matter applicant, he tend fill voids stations. accumulated experience [f]requently, adjust effort listenership format." F.C.C.2d, 583. 3(h) engaged carrier." 153(h). also, 474, (1940) ("[B]roadcasters carriers dealt such. Thus [Communications] recognizes field competition") (footnote omitted). discussed arising service" created apparently phrase describe thought denied addressed implied "constitutional dimension" experimenting forms burdened expense participating wished abandon experimental "[t]he inevitably deprives results inhibition protected communication off-setting justifications, terms diversity-related terms." 865. categorizing noting distinguished music. 583, 2. 862-864. 863. pointed strongly prefer another compare intra-format albeit manner. 863-864. 866, 8. "Notice Inquiry" revealed bias decision, overstated released denial ground: "Petitioners urge defect independent overturning raise serious decision. defects, symptomatic, fatal action, decide obtain gravity warrant rejection Statement." 328, 847, 24. alleged procedural error Amendment. lapse, reopening observed, advertising revenue persons discretionary incomes. dissenting assumption. 341, continued entrusted Nevertheless, "could sustained construction." 336, 51, 855, 51. functioned adequately case; comparable Two judges dissented, arguing upheld, third judge agreed dissenters accorded order reopened study. perform functions "as requires." 303. 12, 10(e) Administrative Procedure shall— "(2) unlawful findings, be— "(A) arbitrary, capricious, abuse discretion, law ." 706(2)(A). applying 'is empowered 803, 2116, Overton Park Volpe, 401 402, 416, 814, 823, 136 (1971). 2121, Transcontinental Gas Pipe Line 365 1, 81 435, 450, (1961). 705, 1444, (1979) (recognizing "policy editorial licensee"); System, Democratic Committee, 412 94, 120, 93 2080, 2095, 772 (1973) (discussing chart workable "middle course" "essentially private journalism broadly accountable standards"). 25% educational, religious, agricultural, nonprofit associations. Cong.Rec. 8843-8846 (1934). 1162. predecessor bill "priorities class licensed stations." H.R. 7357, 68th Cong., 1st Sess., 1(B) (1924). 5589 House Merchant Marine Fisheries, 69th (1926). 1172-1173. S. 1754 Senate Interstate Commerce, 121 (1926); H.R.Conf.Rep.No. 1886, 2d 16-19 (1927). 326 "Nothing chapter understood over communications signals transmitted station, condition promulgated fixed communication." 326. Pacifica Foundation, 438 726, 3026, 1073 prohibits editing advance, preclude content. 735, 737, 3033, 3034. 381, 1801, 121, 2095. En Banc Programming F.C.C. 2303, 2308-2309 (1960); Bay 1351, 1364 (1957). Primer Ascertainment Community Problems Applicants, 650, 679-680 acceptance economic whatever void 679. include increase decrease non-entertainment subjects concern, time." 679, 15. continues degree. memorandum denying area: "To exercises primarily 315. points community. extremely narrow, strictly defined standards, unrestricted day. contrast, [under faced prospect 83. Zenith 231 (additional Chairman Burch). violates dissent relies (1956). chain inapplicable "adequate [Multiple Ownership] amended" 771. procedures. provision. "balanced" involve 2303 (1960), dissent, identified 2314. "entertainment programs." programming: offered public: needed audience remains licensee. His honest prudent course licensee." place foreign providing non-English-speaking citizens. address informational Tr. Oral Arg. (remarks Commission). Cf. (the paid advertisements). pertinent portions opinion, 584-585, follow majority, 586, 4, referring (1977) (Denial Reconsideration). traces development Statement," 586-593. repeat discussion Re: (Notice Inquiry). Lemon Kurtzman, 403 602, 619-620, 2105, 2114, 745 (1971)). Denial Reconsideration, 81. "[t]here doubt severe constitutional difficulties intrusive surveillance, dictated choices, forced obligations, imposed circumstances." 331-332, 850-851 Ginsburg, Regulation 294 ("An desirability 'diversity' imagine"). Note, Regulatory Approach Diversifying Commercial Television Entertainment, Yale L.J. 694 (1980). 303(g) 303(g), directs "encourage larger authorized 303(r). argues, 44, presence "did provision." surprising advisory effect. instructive, inability instant situation. cited text clear, lower agencies. believe incumbent depart practice reasoning. Burch) (joined Commissioners). Confronted resistance easy understand felt undertake task. Public Service Responsibility Licensees 12. (1960). 2312. Children's Report (1974). Channel 20, 70 1770 Southern California, 72 349 Central California 1947 1296 (1979); Alabama Comm'n, 495 (1971), 461 (1975). 2204 602-603, voted reduce regulating several aspects broadcasting, including intention eliminating current guideline amounts air. petitions renewals quantity longer challenge. petitioner doing little responsive successfully challenge Nonetheless, deny, addressing facing inquire 13888, 13890-13897 83 (emphasis original). Brief 35. 864. findings viability speculative. 873-881. comments suggestions 587-589 (concurring Commissioner Hooks); supra 316; Judicial Review Diversity Regulation, Colum.L.Rev. 401, 436-437 "dispensing altogether taking bona fide protest substitutes." 47, 853, 47. "this focus essentials namely, sector populace aggrieved planned change, raises legitimate 334-335, 853-854, 875-880. 395, 1809, (1969), transgress "in interesting kinds licensees." principles, anything, "[i]t [First Amendment] viewers broadcasters, paramount." 1806. All "practical difficulties" intractable, solved channelled energy devising standards devoted mischaracterizing

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