Monty Tayloe

If courts rule that the U.S. Supreme Court’s SEC v Jarkesy decision means a wide swath of FCC enforcement proceedings require jury trials, the agency may not be able to pursue any enforcement without congressional authority, former FCC Office of General Counsel and Enforcement bureau veterans said Wednesday.

The FCC approved on a 3-2 party line vote an NPRM seeking comment on requiring disclosures for political ads that use AI-generated content. The proposal, which was approved July 10 on circulation but not released until Thursday, doesn’t specify the timing of an eventual order. Commissioner Brendan Carr and Federal Election Commission Chair Sean Cooksey condemned it as an attempt to interfere with the 2024 election. The FCC declined to comment on the intended timing of a final rule, or the delay in the item’s release.

Large and small broadcasters, engineers and low-power FM interests disagree about whether the FCC should create a more powerful group of Class A FM station known as A-10, according to comments posted in docket 24-183. Due Monday, the comments responded to a Commander Communications petition (see 2406200052). Many smaller broadcasters support the proposal, but Cumulus and NAB said it could increase interference at other stations. Common Frequency and REC Networks said the proposal must be paired with one allowing increased power for LPFM stations. Multiple commenters, including Commander, said the petition contains technical errors in its calculations of separation distances, but those discrepancies could be adjusted. “Commander believes that the Commission could easily correct these spacing values and that the underlying concept of the FM Class A-10 station would not be affected negatively,” Commander said in a comment filing.

The global outage of Microsoft systems caused by a software update from cybersecurity company Crowdstrike grounded airplanes globally and affected some broadcasters and 911 systems but spared others, reports from multiple companies and state agencies said.

The U.S. Supreme Court’s recent decisions in Loper Bright Enterprises v. Raimondo, which overruled the Chevron doctrine (see 2406280043), and in SEC v. Jarkesy (see 2406270063) were “a good thing,” FCC Commissioner Brendan Carr said Wednesday during a Multicultural Media, Telecom and Internet Council webinar. Other former FCC officials disagreed sharply with the rulings that appear to expand judges' power while reining in regulatory agencies like the FCC.

Satellite operators and broadcasters want the FCC to phase in Space Bureau regulatory fee increases, expand the payor base and maintain COVID-19 pandemic regulatory fee relief measures, according to comments filed by Monday's deadline in docket 12-108. Satellite interests repeatedly warned of fee shock, particularly as the FCC proposes big jumps in fees to cover costs associated with last year’s creation of the bureau (see 2304110002). The agency should “maximize fairness in the payment process” by continuing “the availability of the extraordinary relief measures for financially distressed regulatees,” a joint filing from state broadcast associations said.

A draft order requiring that device-makers and MVPDs make closed-caption display settings easily accessible is expected to receive unanimous approval during FCC commissioners’ open meeting Thursday, agency officials told us. The final item is expected to change language from the draft version, resulting in the rules no longer applying to preinstalled apps. The order is based in part on a consensus proposal from NCTA and several consumer groups representing the deaf and hard of hearing. “We are in a very different place in terms of the consumer industry relationships now than we were decades ago," said Karen Peltz Strauss, a former FCC Consumer Bureau deputy chief who now represents the consumer groups in the proceeding. “There's a lot more communication, a lot more collaboration, coordination. We've seen a real seismic shift in being able to work with industry to get the access we need.”

Broadcast groups demanded that the FCC acknowledge their industry’s increasing competition with tech companies and loosen regulations. Meanwhile, the Free State Foundation and Public Knowledge seek more spectrum, according to reply comments filed by Monday’s deadline in docket 24-119. The comments will inform the 2024 State of Competition in the Communications Marketplace report to Congress (see 2406070001)

A U.S. District Court decision dismissing an industry challenge of a Maryland digital ad tax Wednesday relied in part on the U.S. Supreme Court’s ruling in Moody v. Netchoice that was issued just two days before the district court opinion was released (see 2407010053). Moreover, the cases involved many of the same parties. Plaintiffs in U.S. Chamber v. Lierman -- including CCIA and Netchoice -- didn’t say whether they would appeal, but previously they appealed two district court holdings in the case. “CCIA remains committed to ensuring that protected speech is not burdened, directly or indirectly, by governmental intrusion,” CCIA Senior Vice President Stephanie Joyce said in an email. “We will hold to that commitment as we evaluate the district court’s decision to dismiss our claim in Lierman that Maryland’s Digital Advertising Gross Revenues Tax Act impermissibly burdens online speech.”

Thursday’s 6-3 U.S. Supreme Court decision in SEC v. Jarkesy could have large implications for future FCC enforcement actions, with academics, FCC attorneys and the three dissenting justices saying they expect it to prompt a storm of litigation for federal agencies.