Rep. Pickering Files New Telecom Merger Review Bill

(March 21, 2000) Rep. Pickering filed another bill to limit the FCC's authority to conduct antitrust merger review proceedings. This bill sets time limits on the FCC, and requires that any denial be based upon FCC rules. Currently, the FCC has no rules.

Rep. Chip Pickering (R-MS) introduced HR 4019 IH, the Telecommunications Merger Review Act of 2000, on March 17, 2000. Last year Rep. Pickering introduced a similar bill, HR 2783 IH, which is untitled bill.

Rep. Pickering has argued that the Federal Communications Commission (FCC) has no statutory authority to conduct many of its recent merger review proceedings which have examined the antitrust implications of those mergers. Rather, the FCC has taken its statutory authority to approve license transfers in the "public interest" as though it were grant of authority to duplicate the broad antitrust merger review proceedings of the Department of Justice and Federal Trade Commission.

While HR 2783 only sets time limits for FCC merger review proceedings, HR 4019 would also require the FCC to base any license transfer denials upon its rules.

Rep. Chip Pickering (R-MS)

HR 2783 IH provides that the FCC would have to decide upon license transfer applications within 60 days of receiving the application. However, the FCC could extend its decision once for 30 days upon a majority vote of the Commission. Also, in the case of small local exchange carriers, the deadline would be 45 days, and not be subject to extension.

Currently, the FCC takes as long a 18 months to decide upon license transfer application.

HR 4019 IH has similar, but not identical time limits on FCC merger review proceedings. It would have 90 days for most applications, and 60 days for small carriers.

HR 4019 IH would also prohibit the FCC from denying a license transfer unless is will result in a violation of FCC regulations. This, of course, would force the FCC to promulgate some rules, which is has not done, and be bound by those rules. HR 4019 provides, in part:

"In any proceeding to approve an application to assign or transfer control of a license, permit, or certificate pursuant to the provisions of section 214 or 310, the Commission (1) may not deny such application unless (A) the assignment or transfer of control will result in a violation of the Commission's rules and regulations ... and (B) such violation cannot be cured by the conditional approval of the assignment or transfer of control ..."

In addition to Rep. Pickering, the initial cosponsors are Rick Boucher (D-VA), Richard Burr (R-NC), Nathan Deal (R-GA), John Dingell (D-MI), Vito Fossella (R-NY), Gene Green (D-TX), Ralph Hall (D-TX), Ron Klink (D-PA), Steve Largent (R-OK), Mike Oxley (R-OH), and Billy Tauzin (R-LA). All are members of the House Commerce Committee.