NAB, NATOA Sue FCC Over Effective Competition Decision

The National Association of Telecommunications Officers and Advisors (NATOA) and the National Association of Broadcasters (NAB) have filed suit in federal court to block the Federal Communications Commission's decision that cable operators are subject to effective competition unless proved otherwise. The groups—along with a local franchise authority in Minnesota—filed the suit, saying the FCC decision was "arbitrary, capricious, an abuse of discretion."

The suit was filed in the US Court of Appeals for the DC Circuit, which has primary jurisdiction over FCC decisions. NAB told the court that in markets deemed to be competitive, "cable operators are likely to deny any obligation to carry broadcasters who have negotiated retransmission consent agreements on the basic service tier that must be offered to every subscriber." Cable operators have pointed out that has not happened in the hundreds of markets deemed to be competitive in recent years.