FCC Clarifies Policy for Foreign Investment in Broadcast Licensees

The Federal Communications Commission clarified its policies and procedures for reviewing transactions in the broadcasting industry that would result in foreign ownership stakes exceeding a 25 percent benchmark set by statute.

Sought by a broad and diverse range of parties -- including broadcasters, the public interest sector, and investors -- the ruling potentially removes obstacles to new capital investment, which will support small business, minority, and female broadcast ownership, and spur innovation. The clarification does not alter the FCC’s obligation to protect the public interest, including national security, localism and media diversity, in case-by-case reviews of each transaction. The Communications Act of 1934 limits foreign ownership of US-organized entities that control broadcast licensees to 25 percent when the FCC finds the limitation is in the public interest.