FCC Proposes to Codify and Streamline Foreign Ownership Regulations

The Federal Communications Commission proposed rules to codify certain foreign ownership requirements and streamline its review processes. To account for increasingly complex foreign ownership structures over the past decade, the FCC has employed certain practices but has never codified them into its rules. Without clear definitions, it’s harder for entities to understand and navigate FCC requirements, which puts them at risk for inconsistent outcomes and can needlessly raise costs. This action takes steps to define and simplify these requirements. The Notice of Proposed Rulemaking proposes solutions to concerns for both broadcast and common carrier licensees by seeking comment on or proposing to:

• Codify existing practice regarding the designation of controlling U.S. parent;
• Clarify the Commission’s advance approval rules regarding certain deemed voting interests;
• Require identification of trusts and trustees;
• Extend the methodology for determining foreign ownership and remedial process to privately held companies;
• Clarify U.S. residency requirements; and
• Codify requirements regarding the contents of remedial petitions.