Implementation of Provisions of the Television Viewer Protection Act of 2019 Governing Negotiation of Retransmission Consent Between Qualified Multichannel Video Programming Distributor Buying Groups and Large Station Groups, 9446-9450 [2020-02923]
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Federal Register / Vol. 85, No. 33 / Wednesday, February 19, 2020 / Proposed Rules
Federal Communications Commission.
Daniel Kahn,
Associate Bureau Chief, Wireline Competition
Bureau.
[FR Doc. 2020–03110 Filed 2–18–20; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 76
[MB Docket No. 20–31; FCC 20–10; FRS
16469]
Implementation of Provisions of the
Television Viewer Protection Act of
2019 Governing Negotiation of
Retransmission Consent Between
Qualified Multichannel Video
Programming Distributor Buying
Groups and Large Station Groups
Federal Communications
Commission.
ACTION: Proposed rule.
In this document, the Federal
Communications Commission
(Commission) proposes revisions to its
rules governing good faith negotiation of
retransmission consent, to implement
provisions of the Television Viewer
Protection Act of 2019 governing
negotiations between qualified
multichannel video programming
distributor buying groups and large
broadcast station groups.
DATES: Comments are due on or before
March 5, 2020; reply comments are due
on or before March 16, 2020.
ADDRESSES: You may submit comments,
identified by MB Docket No. 20–31, by
any of the following methods:
• Federal Communications
Commission’s Website: https://
fjallfoss.fcc.gov/ecfs2/. Follow the
instructions for submitting comments.
• Mail: Filings can be sent by hand or
messenger delivery, by commercial
overnight courier, or by first-class or
overnight U.S. Postal Service mail. All
filings must be addressed to the
Commission’s Secretary, Office of the
Secretary, Federal Communications
Commission.
• All hand-delivered or messengerdelivered paper filings for the
Commission’s Secretary must be
delivered to FCC Headquarters at 445
12th St. SW, Room TW–A325,
Washington, DC 20554. The filing hours
are 8:00 a.m. to 7:00 p.m. All hand
deliveries must be held together with
rubber bands or fasteners. Any
envelopes and boxes must be disposed
of before entering the building.
• Commercial overnight mail (other
than U.S. Postal Service Express Mail
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This is a
summary of the Commission’s Notice of
Proposed Rulemaking (NPRM), FCC 20–
10, adopted and released on January 31,
2020. The full text is available for public
inspection and copying during regular
business hours in the FCC Reference
Center, Federal Communications
Commission, 445 12th Street SW, Room
CY–A257, Washington, DC 20554. This
document will also be available via
ECFS at https://docs.fcc.gov/public/
attachments/FCC-20-10A1.docx.
Documents will be available
electronically in ASCII, Microsoft Word,
and/or Adobe Acrobat. The complete
text may be purchased from the
Commission’s copy contractor, 445 12th
Street SW, Room CY–B402, Washington,
DC 20554. Alternative formats are
available for people with disabilities
(Braille, large print, electronic files,
audio format), by sending an email to
fcc504@fcc.gov or calling the
Commission’s Consumer and
Governmental Affairs Bureau at (202)
418–0530 (voice), (202) 418–0432
(TTY).
SUPPLEMENTARY INFORMATION:
AGENCY:
SUMMARY:
and Priority Mail) must be sent to 9050
Junction Drive, Annapolis Junction, MD
20701.
• U.S. Postal Service first-class,
Express, and Priority mail must be
addressed to 445 12th Street SW,
Washington, DC 20554.
People with Disabilities: Contact the
FCC to request reasonable
accommodations (accessible format
documents, sign language interpreters,
CART, etc.) by email: FCC504@fcc.gov
or phone: (202) 418–0530 or TTY: (202)
418–0432.
FOR FURTHER INFORMATION CONTACT: For
additional information on this
proceeding, contact Raelynn Remy of
the Policy Division, Media Bureau at
Raelynn.Remy@fcc.gov, or (202) 418–
2936.
Synopsis
1. In this Notice of Proposed
Rulemaking (NPRM), we propose
revisions to section 76.65 of our rules,
which governs good faith negotiation of
retransmission consent, to implement
provisions in section 1003 of the
Television Viewer Protection Act of
2019 (TVPA).1 Section 1003 principally
1 The Television Viewer Protection Act of 2019,
Public Law 116–94, 133 Stat. 2534, 3198 (2019)
(amendments to be codified at 47 U.S.C. 325).
Through this NPRM, we satisfy Congress’s directive
in section 325(b)(3)(C) of the Communications Act
of 1934, as amended by section 1003(a)(3) of the
TVPA, to commence a rulemaking proceeding to
revise the Commission’s rules to specify that
‘‘certain small MVPDs can meet the obligation to
negotiate [retransmission consent] in good faith
. . . by negotiating with a large station group
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directs the Commission to adopt rules
that provide for negotiation of
retransmission consent between
‘‘qualified multichannel video
programming distributor [MVPD]
buying group[s]’’ and ‘‘large [broadcast]
station group[s]’’ as those terms are
defined in the TVPA. As discussed
below, we propose to adopt rules
defining: (i) The term ‘‘large station
group’’ as used in section 1003 of the
TVPA to mean, in relevant part, an
entity whose individual television
station members collectively have a
national audience reach of more than 20
percent; and (ii) the term ‘‘qualified
MVPD buying group’’ as used in section
1003 to mean, in relevant part, an entity
that negotiates on behalf of MVPDs that
collectively serve no more than 25
percent of all households receiving
service from any MVPD in a given local
market. In addition, we propose to
codify in section 76.65 the provisions
governing negotiation of retransmission
consent between qualified MVPD
buying groups and large station groups,
as well as the definitions of ‘‘local
market’’ and ‘‘multichannel video
programming distributor’’ set forth in
section 1003(b)(3). Finally, we propose
to make minor conforming changes to
section 76.65. We seek comment on
these proposals.2
I. Background
2. The TVPA, enacted on December
20, 2019, is the latest in a series of
statutes that have amended the
Communications Act to establish
parameters for the carriage of television
broadcast stations by MVPDs. As
relevant to this NPRM, section 1003 of
the TVPA revised section 325(b) of the
Act principally by allowing smaller
MVPDs to negotiate collectively as a
buying group for retransmission consent
with large broadcast station groups. In
particular, section 1003(a)(3) of the
TVPA amends section 325(b)(3)(C) of
the Act by adding new subsection
325(b)(3)(C)(vi), which, read as part of
section 325(b)(3)(C) as a whole, requires
the Commission to commence a
rulemaking proceeding to revise its
through a qualified MVPD buying group.’’ Section
325(b)(3)(C), as amended, requires that the
Commission specify such rules ‘‘not later than 90
days after the date of enactment of the TVPA,’’ or
March 19, 2020.
2 This NPRM proposes rule revisions that
implement only section 1003 of the TVPA; TVPA
provisions not covered herein will be implemented
in separate proceedings. In view of the 90-day
deadline established in section 325(b)(3)(C) of the
Act, as amended by section 1003(a)(3) of the TVPA,
we find that establishing the abbreviated pleading
cycle set forth above is necessary to meet our
statutory responsibility and serves the public
interest.
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Federal Register / Vol. 85, No. 33 / Wednesday, February 19, 2020 / Proposed Rules
retransmission consent rules to specify
that:
(I) A [MVPD] may satisfy its obligation to
negotiate [retransmission consent] in good
faith under [section 325(b)(3)(C)(iii)] . . .
with a large [broadcast] station group by
designating a qualified MVPD buying group
to negotiate on its behalf, so long as the
qualified MVPD buying group itself
negotiates in good faith in accordance with
such clause;
(II) It is a violation of the obligation to
negotiate in good faith under [section
325(b)(3)(C)(iii)] for the qualified MVPD
buying group to disclose the prices, terms, or
conditions of an ongoing negotiation or the
final terms of a negotiation to a member of
[such] . . . group that is not intending, or is
unlikely, to enter into the final terms
negotiated by the . . . group; and
(III) A large [broadcast] station group has
an obligation to negotiate [retransmission
consent] in good faith under [section
325(b)(3)(C)(ii)] with respect to a negotiation
. . . with a qualified MVPD buying group.
3. Moreover, section 1003(b) of the
TVPA amended section 325(b)(7) of the
Act principally by adding new
subsections 325(b)(7)(C) and (D), which
define the terms ‘‘qualified MVPD
buying group’’ and ‘‘large station
group,’’ respectively, for the purpose of
applying the new good faith negotiation
provisions of section 325(b)(3)(C)(vi). In
particular, section 325(b)(7)(C) of the
Act, as added by the TVPA, defines
‘‘qualified MVPD buying group,’’ in
relevant part, as an entity that:
(i) Negotiates [retransmission consent] on
behalf of two or more multichannel video
programming distributors—
(I) None of which is a [MVPD] that serves
more than 500,000 subscribers nationally;
and
(II) That do not collectively serve more
than 25 percent of all households served by
a [MVPD] in any single local market in which
the applicable large station group operates.
4. In addition, section 325(b)(7)(D) of
the Act, as added by the TVPA, defines
‘‘large station group’’ as a group of
television broadcast stations that:
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(i) Are directly or indirectly under
common de jure control permitted by the
regulations of the Commission;
(ii) Generally negotiate agreements for
retransmission consent . . . as a single
entity; and
(iii) Include only television broadcast
stations that have a national audience reach
of more than 20 percent.
5. There are ambiguities in the
statutory definitions of ‘‘large station
group’’ and ‘‘qualified MVPD buying
group.’’ With respect to ‘‘large station
group,’’ this term could mean a group of
television broadcast stations whose
members collectively have over 20
percent national audience reach, or it
could mean that each station in the
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group individually has such coverage.
Similarly, the term ‘‘qualified MVPD
buying group’’ could mean an entity
that negotiates on behalf of MVPDs that
collectively serve no more than 25
percent of all households receiving
service from any MVPD in any single
local market in which the large station
group operates. Or it could be referring
to an entity that negotiates on behalf of
MVPDs that collectively serve no more
than 25 percent of all households
receiving service from a single MVPD in
any single local market in which the
large station group operates. We initiate
this proceeding to clarify these terms in
order to permit applicable parties to
utilize the new TVPA protections
promptly, as reflected in the expedited
deadline specified in the new statute.
II. Discussion
6. We propose to implement section
1003 of the TVPA by revising section
76.65 of our rules: (i) To define the term
‘‘large station group’’ as, among other
things, an entity whose individual
television station members collectively
have a national audience reach of more
than 20 percent; and (ii) to define the
term ‘‘qualified MVPD buying group’’
as, among other things, an entity that
negotiates on behalf of MVPDs that do
not collectively serve more than 25
percent of all households served by
MVPDs in any single local market in
which the applicable large station group
or television broadcast station operates.
7. We tentatively conclude that this
interpretation of the term ‘‘large station
group’’ finds support in the text and
structure of the TVPA, and would best
effectuate Congressional intent.3 First,
we note that the text of the first two
clauses in the definition of ‘‘large
station group’’ require, respectively, that
stations comprising a ‘‘large station
group’’ be under ‘‘common de jure
control’’ and negotiate agreements as a
‘‘single entity.’’ We tentatively find that
these two requirements properly
characterize only stations that
collectively comprise a group, rather
than individual stations, and that the
third clause of the definition thus
should be interpreted as imposing a
requirement that must be true of the
stations collectively. Second, we note
that the TVPA contemplates that
‘‘qualified MVPD buying groups’’ and
‘‘large station groups’’ would be
counterparties in a retransmission
consent negotiation. Because the former
term imposes a market share cap of 25
percent on the MVPDs ‘‘collectively,’’
we tentatively conclude that the 20
3 Our proposed interpretation also is harmonious
with the Commission’s ownership restrictions.
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percent market share threshold for
‘‘large station groups’’ similarly should
be construed to apply to the stations
collectively.4 Third, given that a key
purpose of the new good faith
negotiation provisions is to level the
playing field by ‘‘allow[ing] smaller
MVPDs to collectively negotiate as a
buying group [with large station groups]
for retransmission consent,’’ we
tentatively find that Congress could not
have intended to create a collective
negotiation mechanism to address the
growing bargaining power of large
station groups but then defined those
groups in a way that would render the
mechanism unavailable as a practical
matter. Significantly, a contrary
interpretation, whereby each station in
the group individually must have at
least a 20 percent national audience
reach, would be illogical given that
there are currently no stations that meet
this threshold.5
8. We also propose to construe the
phrase ‘‘all households served by a
[MVPD]’’ in the statutory definition of
‘‘qualified MVPD buying group’’ to
mean all households that receive service
from any MVPD, rather than all
households served by a specific MVPD
in a given local market. Because the
percentage of households that subscribe
to a particular MVPD (or class of
MVPDs) relative to the total number of
households that subscribe to any MVPD
in a given market is a competition
metric that the Commission historically
has utilized, we tentatively conclude
that this is the most reasonable reading
of the relevant phrase. We also believe
that adopting the alternative
interpretation would create practical
problems given that the statute provides
no guidance as to which MVPD in a
given market should serve as the
benchmark for the relevant threshold.
We seek comment on these proposals
and tentative conclusions.
9. We also propose to implement
section 1003 by: (i) Codifying in section
76.65 of our rules the provisions
governing negotiation of retransmission
consent between qualified MVPD
buying groups and large station groups
required by section 1003(a)(3) of the
4 We note that the term ‘‘collective’’ is absent
from the statutory definition of ‘‘large station
group,’’ whereas it is included in the definition of
‘‘qualified MVPD buying group.’’ We seek comment
on whether this has any relevance to the
interpretation of this term.
5 Indeed, no individual broadcast station even
meets the 20 percent national audience threshold.
We note that the largest Designated Market Area
(DMA) is New York, which covers roughly six
percent of U.S. television households.
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Federal Register / Vol. 85, No. 33 / Wednesday, February 19, 2020 / Proposed Rules
TVPA 6 and the definitions of ‘‘local
market’’ and ‘‘multichannel video
programming distributor’’ set forth in
section 1003(b)(3); and (ii) deleting the
phrase ‘‘as defined in 17 U.S.C. 122(j)’’
in section 76.65(viii) and (ix). We seek
comment on these proposed rule
revisions and on whether other
revisions are needed to implement
section 1003 of the TVPA.
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Initial Paperwork Reduction Act
Analysis
10. This document does not contain
proposed new or revised information
collection requirements subject to the
Paperwork Reduction Act of 1995,
Public Law 104–13 (44 U.S.C. 3501–
3520). In addition, therefore, it does not
contain any new or modified
‘‘information burden for small business
concerns with fewer than 25
employees’’ pursuant to the Small
Business Paperwork Relief Act of 2002,
Public Law 107–198, see 44 U.S.C.
3506(c)(4).
Ex Parte Rules
11. Permit-But-Disclose. The
proceeding this NPRM initiates shall be
treated as a ‘‘permit-but-disclose’’
proceeding in accordance with the
Commission’s ex parte rules. Persons
making ex parte presentations must file
a copy of any written presentation or a
memorandum summarizing any oral
presentation within two business days
after the presentation (unless a different
deadline applicable to the Sunshine
period applies). Persons making oral ex
parte presentations are reminded that
memoranda summarizing the
presentation must (1) list all persons
attending or otherwise participating in
the meeting at which the ex parte
presentation was made, and (2)
summarize all data presented and
arguments made during the
presentation. If the presentation
consisted in whole or in part of the
presentation of data or arguments
already reflected in the presenter’s
written comments, memoranda or other
filings in the proceeding, the presenter
may provide citations to such data or
arguments in his or her prior comments,
memoranda, or other filings (specifying
the relevant page and/or paragraph
numbers where such data or arguments
can be found) in lieu of summarizing
them in the memorandum. Documents
6 Our proposed rule makes minor, nonsubstantive changes to this statutory provision,
such as revising the statutory phrase ‘‘may satisfy
its obligation to negotiate in good faith under clause
(iii) with respect to a negotiation for retransmission
consent under this section with a large station
group’’ to read ‘‘may satisfy its obligation to
negotiate in good faith for retransmission consent
with a large station group.’’
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shown or given to Commission staff
during ex parte meetings are deemed to
be written ex parte presentations and
must be filed consistent with rule
1.1206(b). In proceedings governed by
rule 1.49(f) or for which the
Commission has made available a
method of electronic filing, written ex
parte presentations and memoranda
summarizing oral ex parte
presentations, and all attachments
thereto, must be filed through the
electronic comment filing system
available for that proceeding, and must
be filed in their native format (e.g., .doc,
.xml, .ppt, searchable .pdf). Participants
in this proceeding should familiarize
themselves with the Commission’s ex
parte rules.
Filing Requirements
12. Pursuant to sections 1.415 and
1.419 of the Commission’s rules,
interested parties may file comments
and reply comments on or before the
dates indicated on the first page of this
document. Comments may be filed
using the Commission’s Electronic
Comment Filing System (ECFS). See
Electronic Filing of Documents in
Rulemaking Proceedings, 63 FR 24121
(1998).
• Electronic Filers: Comments may be
filed electronically using the internet by
accessing the ECFS: https://apps.fcc.gov/
ecfs/.
• Paper Filers: Parties who choose to
file by paper must file an original and
one copy of each filing. If more than one
docket or rulemaking number appears in
the caption of this proceeding, filers
must submit two additional copies for
each additional docket or rulemaking
number.
Filings can be sent by hand or
messenger delivery, by commercial
overnight courier, or by first-class or
overnight U.S. Postal Service mail. All
filings must be addressed to the
Commission’s Secretary, Office of the
Secretary, Federal Communications
Commission.
People with Disabilities: To request
materials in accessible formats for
people with disabilities (braille, large
print, electronic files, audio format),
send an email to fcc504@fcc.gov or call
the Consumer & Governmental Affairs
Bureau at 202–418–0530 (voice), 202–
418–0432 (tty).
13. Availability of Documents.
Comments, reply comments, and ex
parte submissions will be available for
public inspection during regular
business hours in the FCC Reference
Center, Federal Communications
Commission, 445 12th Street SW, CY–
A257, Washington, DC 20554. These
documents will also be available via
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ECFS. Documents will be available
electronically in ASCII, Microsoft Word,
and/or Adobe Acrobat.
14. People with Disabilities: To
request materials in accessible formats
for people with disabilities (braille,
large print, electronic files, audio
format), send an email to fcc504@fcc.gov
or call the Consumer & Governmental
Affairs Bureau at 202–418–0530 (voice),
202–418–0432 (tty).
Additional Information
15. For additional information on this
proceeding, contact Raelynn Remy of
the Media Bureau, Policy Division, at
Raelynn.Remy@fcc.gov or (202) 418–
2936.
Initial Regulatory Flexibility Act
Analysis
16. As required by the Regulatory
Flexibility Act of 1980, as amended
(RFA), the Commission has prepared
this Initial Regulatory Flexibility
Analysis (IRFA) concerning the possible
significant economic impact on small
entities by the rules proposed in the
Notice of Proposed Rulemaking
(NPRM). Written public comments are
requested on this IRFA. Comments must
be identified as responses to the IRFA
and must be filed by the deadlines for
comments provided on the first page of
the NPRM. The Commission will send
a copy of the NPRM, including this
IRFA, to the Chief Counsel for Advocacy
of the Small Business Administration
(SBA). In addition, the NPRM and IRFA
(or summaries thereof) will be
published in the Federal Register.
A. Need for, and Objectives of, the
Proposed Rules
17. In this NPRM, pursuant to section
325(b)(3)(C) of the Act, as amended by
section 1003 of the Television Viewer
Protection Act of 2019, we commence a
rulemaking proceeding to revise our
retransmission consent rules to specify,
among other things, that certain small
multichannel video programming
distributors (MVPDs) may satisfy their
obligation to negotiate retransmission
consent in good faith by negotiating
with a large broadcast station group
through a qualified MVPD buying
group. In particular, we propose to
revise section 76.65 of our rules to
define: (i) The term ‘‘large station
group’’ as used in section 1003 of the
TVPA to mean, in relevant part, an
entity whose individual television
station members collectively have a
national audience reach of more than 20
percent; and (ii) the term ‘‘qualified
MVPD buying group’’ as used in section
1003 to mean, in relevant part, an entity
that negotiates on behalf of MVPDs that
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Federal Register / Vol. 85, No. 33 / Wednesday, February 19, 2020 / Proposed Rules
collectively serve no more than 25
percent of all households receiving
service from any MVPD in a given local
market. In addition, we propose to
codify in section 76.65 the provisions
governing negotiation of retransmission
consent between qualified MVPD
buying groups and large station groups,
as well as the definitions of ‘‘local
market’’ and ‘‘multichannel video
programming distributor’’ set forth in
section 1003(b)(3). We also propose to
make minor conforming changes to
section 76.65.7 The NPRM seeks
comment on these proposals and on
whether other rule revisions are needed
to implement section 1003 of the TVPA.
B. Legal Basis
18. The proposed action is authorized
pursuant to sections 4(i), 4(j), 303(r),
and 325 of the Communications Act of
1934, as amended, 47 U.S.C. 154(i),
154(j), 303(r), and 325, and section 1003
of the Television Viewer Protection Act
of 2019.
C. Description and Estimate of the
Number of Small Entities to Which the
Proposed Rules Will Apply
19. The RFA directs agencies to
provide a description of, and where
feasible, an estimate of the number of
small entities that may be affected by
the proposed rules, if adopted. The RFA
generally defines the term ‘‘small
entity’’ as having the same meaning as
the terms ‘‘small business,’’ ‘‘small
organization,’’ and ‘‘small governmental
jurisdiction.’’ In addition, the term
‘‘small business’’ has the same meaning
as the term ‘‘small business concern’’
under the Small Business Act. A small
business concern is one which: (1) Is
independently owned and operated; (2)
is not dominant in its field of operation;
and (3) satisfies any additional criteria
established by the SBA.8 Below is a list
of such small entities.
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•
•
•
•
Cable Companies and Systems
Cable System Operators
Open Video Services
Satellite Master Antenna Television
(SMATV) Systems
• Direct Broadcast Satellite (DBS)
Service
• Television Broadcasting
7 For example, consistent with the statute, the
proposed rules delete the phrase ‘‘as defined in 17
U.S.C. 122(j)’’ in section 76.65(viii) and (ix). Section
1003(c)(2) of the TVPA directs the Commission to
strike this phrase from section 325(b)(3)(C) of the
Act.
8 15 U.S.C. 632.
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D. Description of Projected Reporting,
Recordkeeping, and Other Compliance
Requirements
20. The NPRM does not propose to
adopt any reporting or recordkeeping
requirements. The NPRM proposes to
revise the Commission’s rules to permit
certain small MVPDs to meet their
statutory obligation to negotiate
retransmission consent in good faith by
designating a qualified MVPD buying
group to negotiate on their behalf with
a large broadcast station group. In
particular, the NPRM proposes to revise
such rules by, among other things,
clarifying the meaning of the statutory
terms ‘‘large station group’’ and
‘‘qualified MVPD buying group’’ so as to
facilitate smaller MVPDs’ use of the new
collective bargaining provisions
consistent with Congressional intent.
The proposed rule revisions would
impose no new regulatory compliance
burdens on small television broadcast
stations.
E. Steps Taken To Minimize Significant
Economic Impact on Small Entities and
Significant Alternatives Considered
21. The RFA requires an agency to
describe any significant alternatives that
it has considered in reaching its
proposed approach, which may include
the following four alternatives (among
others): ‘‘(1) the establishment of
differing compliance or reporting
requirements or timetables that take into
account the resources available to small
entities; (2) the clarification,
consolidation, or simplification of
compliance and reporting requirements
under the rule for such small entities;
(3) the use of performance, rather than
design standards; and (4) an exemption
from coverage of the rule, or any part
thereof, for small entities.’’
22. Through this NPRM, the
Commission seeks to implement section
1003 of the TVPA in a way that reduces
burdens on smaller MVPDs that
negotiate retransmission consent against
large broadcast station groups with
greater bargaining leverage by allowing
them to negotiate collectively as a
buying group for retransmission consent
with such groups. As noted, the
proposals in the NPRM, if adopted,
likely would not have an adverse
economic impact on any small entities,
and would have a positive economic
impact on smaller MVPDs that choose to
avail themselves of the TVPA’s new
collective bargaining provisions to
negotiate against large broadcast station
groups that have significant market
power. We invite comment on the
economic impact of our proposals on
small entities, and on how the
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9449
Commission could minimize any
potential burdens on such entities.
F. Federal Rules That May Duplicate,
Overlap, or Conflict With the Proposed
Rule
23. None.
24. We adopt this NPRM pursuant to
the authority found in sections 4(i), 4(j),
303(r), and 325 of the Communications
Act of 1934, as amended, 47 U.S.C.
154(i), 154(j), 303(r), and 325, and
section 1003 of the Television Viewer
Protection Act of 2019.
List of Subjects in 47 CFR Part 76
Cable television, Communications.
Federal Communications Commission.
Marlene Dortch,
Secretary.
Proposed Rules
For the reasons discussed in the
preamble, the Federal Communications
Commission proposes to amend Part 76
of Title 47 of the Code of Federal
Regulations (CFR) as set forth below:
PART 76—MULTICHANNEL VIDEO
AND CABLE TELEVISION SERVICE
1. The authority citation for Part 76
continues to read as follows:
■
Authority: 47 U.S.C. 151, 152, 153, 154,
301, 302, 302a, 303, 303a, 307, 308, 309, 312,
315, 317, 325, 338, 339, 340, 341, 503, 521,
522, 531, 532, 534, 535, 536, 537, 543, 544,
544a, 545, 548, 549, 552, 554, 556, 558, 560,
561, 571, 572, 573.
2. Amend § 76.65 by revising
paragraphs (b)(1)(viii) and (ix) and
(b)(2), and adding paragraphs (b)(3), and
(b)(4) to read as follows:
■
§ 76.65 Good faith and exclusive
retransmission consent complaints.
*
*
*
*
*
(b) * * * (1) * * *
(viii) Coordination of negotiations or
negotiation on a joint basis by two or
more television broadcast stations in the
same local market to grant
retransmission consent to a
multichannel video programming
distributor, unless such stations are
directly or indirectly under common de
jure control permitted under the
regulations of the Commission.
(ix) The imposition by a television
broadcast station of limitations on the
ability of a multichannel video
programming distributor to carry into
the local market of such station a
television signal that has been deemed
significantly viewed, within the
meaning of § 76.54 of this part, or any
successor regulation, or any other
television broadcast signal such
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distributor is authorized to carry under
47 U.S.C. 338, 339, 340 or 534, unless
such stations are directly or indirectly
under common de jure control
permitted by the Commission.
(2) Negotiation of retransmission
consent between qualified multichannel
video programming distributor buying
groups and large station groups. (i) A
multichannel video programming
distributor may satisfy its obligation to
negotiate in good faith for
retransmission consent with a large
station group by designating a qualified
MVPD buying group to negotiate on its
behalf, so long as the qualified MVPD
buying group itself negotiates in good
faith in accordance with this section.
(ii) It is a violation of the obligation
to negotiate in good faith for a qualified
MVPD buying group to disclose the
prices, terms, or conditions of an
ongoing negotiation or the final terms of
a negotiation to a member of the
qualified MVPD buying group that is not
intending, or is unlikely, to enter into
the final terms negotiated by the
qualified MVPD buying group.
(iii) A large station group has an
obligation to negotiate in good faith for
retransmission consent with a qualified
MVPD buying group.
VerDate Sep<11>2014
17:08 Feb 18, 2020
Jkt 250001
(A) ‘‘Qualified MVPD buying group’’
means an entity that, with respect to a
negotiation with a large station group
for retransmission consent—
(1) Negotiates on behalf of two or
more multichannel video programming
distributors—
(i) None of which is a multichannel
video programming distributor that
serves more than 500,000 subscribers
nationally; and
(ii) That do not collectively serve
more than 25 percent of all households
served by multichannel video
programming distributors in any single
local market in which the applicable
large station group operates; and
(2) Negotiates agreements for such
retransmission consent—
(i) That contain standardized contract
provisions, including billing structures
and technical quality standards, for each
multichannel video programming
distributor on behalf of which the entity
negotiates; and
(ii) Under which the entity assumes
liability to remit to the applicable large
station group all fees received from the
multichannel video programming
distributors on behalf of which the
entity negotiates.
(B) ‘‘Large station group’’ means a
group of television broadcast stations
that—
PO 00000
Frm 00052
Fmt 4702
Sfmt 9990
(1) Are directly or indirectly under
common de jure control permitted by
the regulations of the Commission;
(2) Generally negotiate agreements for
retransmission consent under this
section as a single entity; and
(3) Include only television broadcast
stations that collectively have a national
audience reach of more than 20 percent;
(3) Definitions. For purposes of this
section and § 76.64, the following
definitions apply:
(i) ‘‘Local market’’ has the meaning
given such term in 17 U.S.C. 122(j); and
(ii) ‘‘Multichannel video programming
distributor’’ has the meaning given such
term in 47 U.S.C. 522.
(4) Totality of the circumstances. In
addition to the standards set forth in
paragraph (b)(1) of this section, a
Negotiating Entity may demonstrate,
based on the totality of the
circumstances of a particular
retransmission consent negotiation, that
a television broadcast station or
multichannel video programming
distributor breached its duty to
negotiate in good faith as set forth in
paragraph (a) of this section.
*
*
*
*
*
[FR Doc. 2020–02923 Filed 2–18–20; 8:45 am]
BILLING CODE 6712–01–P
E:\FR\FM\19FEP1.SGM
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Agencies
[Federal Register Volume 85, Number 33 (Wednesday, February 19, 2020)]
[Proposed Rules]
[Pages 9446-9450]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-02923]
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 76
[MB Docket No. 20-31; FCC 20-10; FRS 16469]
Implementation of Provisions of the Television Viewer Protection
Act of 2019 Governing Negotiation of Retransmission Consent Between
Qualified Multichannel Video Programming Distributor Buying Groups and
Large Station Groups
AGENCY: Federal Communications Commission.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: In this document, the Federal Communications Commission
(Commission) proposes revisions to its rules governing good faith
negotiation of retransmission consent, to implement provisions of the
Television Viewer Protection Act of 2019 governing negotiations between
qualified multichannel video programming distributor buying groups and
large broadcast station groups.
DATES: Comments are due on or before March 5, 2020; reply comments are
due on or before March 16, 2020.
ADDRESSES: You may submit comments, identified by MB Docket No. 20-31,
by any of the following methods:
Federal Communications Commission's Website: https://fjallfoss.fcc.gov/ecfs2/. Follow the instructions for submitting
comments.
Mail: Filings can be sent by hand or messenger delivery,
by commercial overnight courier, or by first-class or overnight U.S.
Postal Service mail. All filings must be addressed to the Commission's
Secretary, Office of the Secretary, Federal Communications Commission.
All hand-delivered or messenger-delivered paper filings
for the Commission's Secretary must be delivered to FCC Headquarters at
445 12th St. SW, Room TW-A325, Washington, DC 20554. The filing hours
are 8:00 a.m. to 7:00 p.m. All hand deliveries must be held together
with rubber bands or fasteners. Any envelopes and boxes must be
disposed of before entering the building.
Commercial overnight mail (other than U.S. Postal Service
Express Mail and Priority Mail) must be sent to 9050 Junction Drive,
Annapolis Junction, MD 20701.
U.S. Postal Service first-class, Express, and Priority
mail must be addressed to 445 12th Street SW, Washington, DC 20554.
People with Disabilities: Contact the FCC to request reasonable
accommodations (accessible format documents, sign language
interpreters, CART, etc.) by email: [email protected] or phone: (202) 418-
0530 or TTY: (202) 418-0432.
FOR FURTHER INFORMATION CONTACT: For additional information on this
proceeding, contact Raelynn Remy of the Policy Division, Media Bureau
at [email protected], or (202) 418-2936.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice
of Proposed Rulemaking (NPRM), FCC 20-10, adopted and released on
January 31, 2020. The full text is available for public inspection and
copying during regular business hours in the FCC Reference Center,
Federal Communications Commission, 445 12th Street SW, Room CY-A257,
Washington, DC 20554. This document will also be available via ECFS at
https://docs.fcc.gov/public/attachments/FCC-20-10A1.docx. Documents
will be available electronically in ASCII, Microsoft Word, and/or Adobe
Acrobat. The complete text may be purchased from the Commission's copy
contractor, 445 12th Street SW, Room CY-B402, Washington, DC 20554.
Alternative formats are available for people with disabilities
(Braille, large print, electronic files, audio format), by sending an
email to [email protected] or calling the Commission's Consumer and
Governmental Affairs Bureau at (202) 418-0530 (voice), (202) 418-0432
(TTY).
Synopsis
1. In this Notice of Proposed Rulemaking (NPRM), we propose
revisions to section 76.65 of our rules, which governs good faith
negotiation of retransmission consent, to implement provisions in
section 1003 of the Television Viewer Protection Act of 2019 (TVPA).\1\
Section 1003 principally directs the Commission to adopt rules that
provide for negotiation of retransmission consent between ``qualified
multichannel video programming distributor [MVPD] buying group[s]'' and
``large [broadcast] station group[s]'' as those terms are defined in
the TVPA. As discussed below, we propose to adopt rules defining: (i)
The term ``large station group'' as used in section 1003 of the TVPA to
mean, in relevant part, an entity whose individual television station
members collectively have a national audience reach of more than 20
percent; and (ii) the term ``qualified MVPD buying group'' as used in
section 1003 to mean, in relevant part, an entity that negotiates on
behalf of MVPDs that collectively serve no more than 25 percent of all
households receiving service from any MVPD in a given local market. In
addition, we propose to codify in section 76.65 the provisions
governing negotiation of retransmission consent between qualified MVPD
buying groups and large station groups, as well as the definitions of
``local market'' and ``multichannel video programming distributor'' set
forth in section 1003(b)(3). Finally, we propose to make minor
conforming changes to section 76.65. We seek comment on these
proposals.\2\
---------------------------------------------------------------------------
\1\ The Television Viewer Protection Act of 2019, Public Law
116-94, 133 Stat. 2534, 3198 (2019) (amendments to be codified at 47
U.S.C. 325). Through this NPRM, we satisfy Congress's directive in
section 325(b)(3)(C) of the Communications Act of 1934, as amended
by section 1003(a)(3) of the TVPA, to commence a rulemaking
proceeding to revise the Commission's rules to specify that
``certain small MVPDs can meet the obligation to negotiate
[retransmission consent] in good faith . . . by negotiating with a
large station group through a qualified MVPD buying group.'' Section
325(b)(3)(C), as amended, requires that the Commission specify such
rules ``not later than 90 days after the date of enactment of the
TVPA,'' or March 19, 2020.
\2\ This NPRM proposes rule revisions that implement only
section 1003 of the TVPA; TVPA provisions not covered herein will be
implemented in separate proceedings. In view of the 90-day deadline
established in section 325(b)(3)(C) of the Act, as amended by
section 1003(a)(3) of the TVPA, we find that establishing the
abbreviated pleading cycle set forth above is necessary to meet our
statutory responsibility and serves the public interest.
---------------------------------------------------------------------------
I. Background
2. The TVPA, enacted on December 20, 2019, is the latest in a
series of statutes that have amended the Communications Act to
establish parameters for the carriage of television broadcast stations
by MVPDs. As relevant to this NPRM, section 1003 of the TVPA revised
section 325(b) of the Act principally by allowing smaller MVPDs to
negotiate collectively as a buying group for retransmission consent
with large broadcast station groups. In particular, section 1003(a)(3)
of the TVPA amends section 325(b)(3)(C) of the Act by adding new
subsection 325(b)(3)(C)(vi), which, read as part of section
325(b)(3)(C) as a whole, requires the Commission to commence a
rulemaking proceeding to revise its
[[Page 9447]]
retransmission consent rules to specify that:
(I) A [MVPD] may satisfy its obligation to negotiate
[retransmission consent] in good faith under [section
325(b)(3)(C)(iii)] . . . with a large [broadcast] station group by
designating a qualified MVPD buying group to negotiate on its
behalf, so long as the qualified MVPD buying group itself negotiates
in good faith in accordance with such clause;
(II) It is a violation of the obligation to negotiate in good
faith under [section 325(b)(3)(C)(iii)] for the qualified MVPD
buying group to disclose the prices, terms, or conditions of an
ongoing negotiation or the final terms of a negotiation to a member
of [such] . . . group that is not intending, or is unlikely, to
enter into the final terms negotiated by the . . . group; and
(III) A large [broadcast] station group has an obligation to
negotiate [retransmission consent] in good faith under [section
325(b)(3)(C)(ii)] with respect to a negotiation . . . with a
qualified MVPD buying group.
3. Moreover, section 1003(b) of the TVPA amended section 325(b)(7)
of the Act principally by adding new subsections 325(b)(7)(C) and (D),
which define the terms ``qualified MVPD buying group'' and ``large
station group,'' respectively, for the purpose of applying the new good
faith negotiation provisions of section 325(b)(3)(C)(vi). In
particular, section 325(b)(7)(C) of the Act, as added by the TVPA,
defines ``qualified MVPD buying group,'' in relevant part, as an entity
that:
(i) Negotiates [retransmission consent] on behalf of two or more
multichannel video programming distributors--
(I) None of which is a [MVPD] that serves more than 500,000
subscribers nationally; and
(II) That do not collectively serve more than 25 percent of all
households served by a [MVPD] in any single local market in which
the applicable large station group operates.
4. In addition, section 325(b)(7)(D) of the Act, as added by the
TVPA, defines ``large station group'' as a group of television
broadcast stations that:
(i) Are directly or indirectly under common de jure control
permitted by the regulations of the Commission;
(ii) Generally negotiate agreements for retransmission consent .
. . as a single entity; and
(iii) Include only television broadcast stations that have a
national audience reach of more than 20 percent.
5. There are ambiguities in the statutory definitions of ``large
station group'' and ``qualified MVPD buying group.'' With respect to
``large station group,'' this term could mean a group of television
broadcast stations whose members collectively have over 20 percent
national audience reach, or it could mean that each station in the
group individually has such coverage. Similarly, the term ``qualified
MVPD buying group'' could mean an entity that negotiates on behalf of
MVPDs that collectively serve no more than 25 percent of all households
receiving service from any MVPD in any single local market in which the
large station group operates. Or it could be referring to an entity
that negotiates on behalf of MVPDs that collectively serve no more than
25 percent of all households receiving service from a single MVPD in
any single local market in which the large station group operates. We
initiate this proceeding to clarify these terms in order to permit
applicable parties to utilize the new TVPA protections promptly, as
reflected in the expedited deadline specified in the new statute.
II. Discussion
6. We propose to implement section 1003 of the TVPA by revising
section 76.65 of our rules: (i) To define the term ``large station
group'' as, among other things, an entity whose individual television
station members collectively have a national audience reach of more
than 20 percent; and (ii) to define the term ``qualified MVPD buying
group'' as, among other things, an entity that negotiates on behalf of
MVPDs that do not collectively serve more than 25 percent of all
households served by MVPDs in any single local market in which the
applicable large station group or television broadcast station
operates.
7. We tentatively conclude that this interpretation of the term
``large station group'' finds support in the text and structure of the
TVPA, and would best effectuate Congressional intent.\3\ First, we note
that the text of the first two clauses in the definition of ``large
station group'' require, respectively, that stations comprising a
``large station group'' be under ``common de jure control'' and
negotiate agreements as a ``single entity.'' We tentatively find that
these two requirements properly characterize only stations that
collectively comprise a group, rather than individual stations, and
that the third clause of the definition thus should be interpreted as
imposing a requirement that must be true of the stations collectively.
Second, we note that the TVPA contemplates that ``qualified MVPD buying
groups'' and ``large station groups'' would be counterparties in a
retransmission consent negotiation. Because the former term imposes a
market share cap of 25 percent on the MVPDs ``collectively,'' we
tentatively conclude that the 20 percent market share threshold for
``large station groups'' similarly should be construed to apply to the
stations collectively.\4\ Third, given that a key purpose of the new
good faith negotiation provisions is to level the playing field by
``allow[ing] smaller MVPDs to collectively negotiate as a buying group
[with large station groups] for retransmission consent,'' we
tentatively find that Congress could not have intended to create a
collective negotiation mechanism to address the growing bargaining
power of large station groups but then defined those groups in a way
that would render the mechanism unavailable as a practical matter.
Significantly, a contrary interpretation, whereby each station in the
group individually must have at least a 20 percent national audience
reach, would be illogical given that there are currently no stations
that meet this threshold.\5\
---------------------------------------------------------------------------
\3\ Our proposed interpretation also is harmonious with the
Commission's ownership restrictions.
\4\ We note that the term ``collective'' is absent from the
statutory definition of ``large station group,'' whereas it is
included in the definition of ``qualified MVPD buying group.'' We
seek comment on whether this has any relevance to the interpretation
of this term.
\5\ Indeed, no individual broadcast station even meets the 20
percent national audience threshold. We note that the largest
Designated Market Area (DMA) is New York, which covers roughly six
percent of U.S. television households.
---------------------------------------------------------------------------
8. We also propose to construe the phrase ``all households served
by a [MVPD]'' in the statutory definition of ``qualified MVPD buying
group'' to mean all households that receive service from any MVPD,
rather than all households served by a specific MVPD in a given local
market. Because the percentage of households that subscribe to a
particular MVPD (or class of MVPDs) relative to the total number of
households that subscribe to any MVPD in a given market is a
competition metric that the Commission historically has utilized, we
tentatively conclude that this is the most reasonable reading of the
relevant phrase. We also believe that adopting the alternative
interpretation would create practical problems given that the statute
provides no guidance as to which MVPD in a given market should serve as
the benchmark for the relevant threshold. We seek comment on these
proposals and tentative conclusions.
9. We also propose to implement section 1003 by: (i) Codifying in
section 76.65 of our rules the provisions governing negotiation of
retransmission consent between qualified MVPD buying groups and large
station groups required by section 1003(a)(3) of the
[[Page 9448]]
TVPA \6\ and the definitions of ``local market'' and ``multichannel
video programming distributor'' set forth in section 1003(b)(3); and
(ii) deleting the phrase ``as defined in 17 U.S.C. 122(j)'' in section
76.65(viii) and (ix). We seek comment on these proposed rule revisions
and on whether other revisions are needed to implement section 1003 of
the TVPA.
---------------------------------------------------------------------------
\6\ Our proposed rule makes minor, non-substantive changes to
this statutory provision, such as revising the statutory phrase
``may satisfy its obligation to negotiate in good faith under clause
(iii) with respect to a negotiation for retransmission consent under
this section with a large station group'' to read ``may satisfy its
obligation to negotiate in good faith for retransmission consent
with a large station group.''
---------------------------------------------------------------------------
Initial Paperwork Reduction Act Analysis
10. This document does not contain proposed new or revised
information collection requirements subject to the Paperwork Reduction
Act of 1995, Public Law 104-13 (44 U.S.C. 3501-3520). In addition,
therefore, it does not contain any new or modified ``information burden
for small business concerns with fewer than 25 employees'' pursuant to
the Small Business Paperwork Relief Act of 2002, Public Law 107-198,
see 44 U.S.C. 3506(c)(4).
Ex Parte Rules
11. Permit-But-Disclose. The proceeding this NPRM initiates shall
be treated as a ``permit-but-disclose'' proceeding in accordance with
the Commission's ex parte rules. Persons making ex parte presentations
must file a copy of any written presentation or a memorandum
summarizing any oral presentation within two business days after the
presentation (unless a different deadline applicable to the Sunshine
period applies). Persons making oral ex parte presentations are
reminded that memoranda summarizing the presentation must (1) list all
persons attending or otherwise participating in the meeting at which
the ex parte presentation was made, and (2) summarize all data
presented and arguments made during the presentation. If the
presentation consisted in whole or in part of the presentation of data
or arguments already reflected in the presenter's written comments,
memoranda or other filings in the proceeding, the presenter may provide
citations to such data or arguments in his or her prior comments,
memoranda, or other filings (specifying the relevant page and/or
paragraph numbers where such data or arguments can be found) in lieu of
summarizing them in the memorandum. Documents shown or given to
Commission staff during ex parte meetings are deemed to be written ex
parte presentations and must be filed consistent with rule 1.1206(b).
In proceedings governed by rule 1.49(f) or for which the Commission has
made available a method of electronic filing, written ex parte
presentations and memoranda summarizing oral ex parte presentations,
and all attachments thereto, must be filed through the electronic
comment filing system available for that proceeding, and must be filed
in their native format (e.g., .doc, .xml, .ppt, searchable .pdf).
Participants in this proceeding should familiarize themselves with the
Commission's ex parte rules.
Filing Requirements
12. Pursuant to sections 1.415 and 1.419 of the Commission's rules,
interested parties may file comments and reply comments on or before
the dates indicated on the first page of this document. Comments may be
filed using the Commission's Electronic Comment Filing System (ECFS).
See Electronic Filing of Documents in Rulemaking Proceedings, 63 FR
24121 (1998).
Electronic Filers: Comments may be filed electronically
using the internet by accessing the ECFS: https://apps.fcc.gov/ecfs/.
Paper Filers: Parties who choose to file by paper must
file an original and one copy of each filing. If more than one docket
or rulemaking number appears in the caption of this proceeding, filers
must submit two additional copies for each additional docket or
rulemaking number.
Filings can be sent by hand or messenger delivery, by commercial
overnight courier, or by first-class or overnight U.S. Postal Service
mail. All filings must be addressed to the Commission's Secretary,
Office of the Secretary, Federal Communications Commission.
People with Disabilities: To request materials in accessible
formats for people with disabilities (braille, large print, electronic
files, audio format), send an email to [email protected] or call the
Consumer & Governmental Affairs Bureau at 202-418-0530 (voice), 202-
418-0432 (tty).
13. Availability of Documents. Comments, reply comments, and ex
parte submissions will be available for public inspection during
regular business hours in the FCC Reference Center, Federal
Communications Commission, 445 12th Street SW, CY-A257, Washington, DC
20554. These documents will also be available via ECFS. Documents will
be available electronically in ASCII, Microsoft Word, and/or Adobe
Acrobat.
14. People with Disabilities: To request materials in accessible
formats for people with disabilities (braille, large print, electronic
files, audio format), send an email to [email protected] or call the
Consumer & Governmental Affairs Bureau at 202-418-0530 (voice), 202-
418-0432 (tty).
Additional Information
15. For additional information on this proceeding, contact Raelynn
Remy of the Media Bureau, Policy Division, at [email protected] or
(202) 418-2936.
Initial Regulatory Flexibility Act Analysis
16. As required by the Regulatory Flexibility Act of 1980, as
amended (RFA), the Commission has prepared this Initial Regulatory
Flexibility Analysis (IRFA) concerning the possible significant
economic impact on small entities by the rules proposed in the Notice
of Proposed Rulemaking (NPRM). Written public comments are requested on
this IRFA. Comments must be identified as responses to the IRFA and
must be filed by the deadlines for comments provided on the first page
of the NPRM. The Commission will send a copy of the NPRM, including
this IRFA, to the Chief Counsel for Advocacy of the Small Business
Administration (SBA). In addition, the NPRM and IRFA (or summaries
thereof) will be published in the Federal Register.
A. Need for, and Objectives of, the Proposed Rules
17. In this NPRM, pursuant to section 325(b)(3)(C) of the Act, as
amended by section 1003 of the Television Viewer Protection Act of
2019, we commence a rulemaking proceeding to revise our retransmission
consent rules to specify, among other things, that certain small
multichannel video programming distributors (MVPDs) may satisfy their
obligation to negotiate retransmission consent in good faith by
negotiating with a large broadcast station group through a qualified
MVPD buying group. In particular, we propose to revise section 76.65 of
our rules to define: (i) The term ``large station group'' as used in
section 1003 of the TVPA to mean, in relevant part, an entity whose
individual television station members collectively have a national
audience reach of more than 20 percent; and (ii) the term ``qualified
MVPD buying group'' as used in section 1003 to mean, in relevant part,
an entity that negotiates on behalf of MVPDs that
[[Page 9449]]
collectively serve no more than 25 percent of all households receiving
service from any MVPD in a given local market. In addition, we propose
to codify in section 76.65 the provisions governing negotiation of
retransmission consent between qualified MVPD buying groups and large
station groups, as well as the definitions of ``local market'' and
``multichannel video programming distributor'' set forth in section
1003(b)(3). We also propose to make minor conforming changes to section
76.65.\7\ The NPRM seeks comment on these proposals and on whether
other rule revisions are needed to implement section 1003 of the TVPA.
---------------------------------------------------------------------------
\7\ For example, consistent with the statute, the proposed rules
delete the phrase ``as defined in 17 U.S.C. 122(j)'' in section
76.65(viii) and (ix). Section 1003(c)(2) of the TVPA directs the
Commission to strike this phrase from section 325(b)(3)(C) of the
Act.
---------------------------------------------------------------------------
B. Legal Basis
18. The proposed action is authorized pursuant to sections 4(i),
4(j), 303(r), and 325 of the Communications Act of 1934, as amended, 47
U.S.C. 154(i), 154(j), 303(r), and 325, and section 1003 of the
Television Viewer Protection Act of 2019.
C. Description and Estimate of the Number of Small Entities to Which
the Proposed Rules Will Apply
19. The RFA directs agencies to provide a description of, and where
feasible, an estimate of the number of small entities that may be
affected by the proposed rules, if adopted. The RFA generally defines
the term ``small entity'' as having the same meaning as the terms
``small business,'' ``small organization,'' and ``small governmental
jurisdiction.'' In addition, the term ``small business'' has the same
meaning as the term ``small business concern'' under the Small Business
Act. A small business concern is one which: (1) Is independently owned
and operated; (2) is not dominant in its field of operation; and (3)
satisfies any additional criteria established by the SBA.\8\ Below is a
list of such small entities.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 632.
Cable Companies and Systems
Cable System Operators
Open Video Services
Satellite Master Antenna Television (SMATV) Systems
Direct Broadcast Satellite (DBS) Service
Television Broadcasting
D. Description of Projected Reporting, Recordkeeping, and Other
Compliance Requirements
20. The NPRM does not propose to adopt any reporting or
recordkeeping requirements. The NPRM proposes to revise the
Commission's rules to permit certain small MVPDs to meet their
statutory obligation to negotiate retransmission consent in good faith
by designating a qualified MVPD buying group to negotiate on their
behalf with a large broadcast station group. In particular, the NPRM
proposes to revise such rules by, among other things, clarifying the
meaning of the statutory terms ``large station group'' and ``qualified
MVPD buying group'' so as to facilitate smaller MVPDs' use of the new
collective bargaining provisions consistent with Congressional intent.
The proposed rule revisions would impose no new regulatory compliance
burdens on small television broadcast stations.
E. Steps Taken To Minimize Significant Economic Impact on Small
Entities and Significant Alternatives Considered
21. The RFA requires an agency to describe any significant
alternatives that it has considered in reaching its proposed approach,
which may include the following four alternatives (among others): ``(1)
the establishment of differing compliance or reporting requirements or
timetables that take into account the resources available to small
entities; (2) the clarification, consolidation, or simplification of
compliance and reporting requirements under the rule for such small
entities; (3) the use of performance, rather than design standards; and
(4) an exemption from coverage of the rule, or any part thereof, for
small entities.''
22. Through this NPRM, the Commission seeks to implement section
1003 of the TVPA in a way that reduces burdens on smaller MVPDs that
negotiate retransmission consent against large broadcast station groups
with greater bargaining leverage by allowing them to negotiate
collectively as a buying group for retransmission consent with such
groups. As noted, the proposals in the NPRM, if adopted, likely would
not have an adverse economic impact on any small entities, and would
have a positive economic impact on smaller MVPDs that choose to avail
themselves of the TVPA's new collective bargaining provisions to
negotiate against large broadcast station groups that have significant
market power. We invite comment on the economic impact of our proposals
on small entities, and on how the Commission could minimize any
potential burdens on such entities.
F. Federal Rules That May Duplicate, Overlap, or Conflict With the
Proposed Rule
23. None.
24. We adopt this NPRM pursuant to the authority found in sections
4(i), 4(j), 303(r), and 325 of the Communications Act of 1934, as
amended, 47 U.S.C. 154(i), 154(j), 303(r), and 325, and section 1003 of
the Television Viewer Protection Act of 2019.
List of Subjects in 47 CFR Part 76
Cable television, Communications.
Federal Communications Commission.
Marlene Dortch,
Secretary.
Proposed Rules
For the reasons discussed in the preamble, the Federal
Communications Commission proposes to amend Part 76 of Title 47 of the
Code of Federal Regulations (CFR) as set forth below:
PART 76--MULTICHANNEL VIDEO AND CABLE TELEVISION SERVICE
0
1. The authority citation for Part 76 continues to read as follows:
Authority: 47 U.S.C. 151, 152, 153, 154, 301, 302, 302a, 303,
303a, 307, 308, 309, 312, 315, 317, 325, 338, 339, 340, 341, 503,
521, 522, 531, 532, 534, 535, 536, 537, 543, 544, 544a, 545, 548,
549, 552, 554, 556, 558, 560, 561, 571, 572, 573.
0
2. Amend Sec. 76.65 by revising paragraphs (b)(1)(viii) and (ix) and
(b)(2), and adding paragraphs (b)(3), and (b)(4) to read as follows:
Sec. 76.65 Good faith and exclusive retransmission consent
complaints.
* * * * *
(b) * * * (1) * * *
(viii) Coordination of negotiations or negotiation on a joint basis
by two or more television broadcast stations in the same local market
to grant retransmission consent to a multichannel video programming
distributor, unless such stations are directly or indirectly under
common de jure control permitted under the regulations of the
Commission.
(ix) The imposition by a television broadcast station of
limitations on the ability of a multichannel video programming
distributor to carry into the local market of such station a television
signal that has been deemed significantly viewed, within the meaning of
Sec. 76.54 of this part, or any successor regulation, or any other
television broadcast signal such
[[Page 9450]]
distributor is authorized to carry under 47 U.S.C. 338, 339, 340 or
534, unless such stations are directly or indirectly under common de
jure control permitted by the Commission.
(2) Negotiation of retransmission consent between qualified
multichannel video programming distributor buying groups and large
station groups. (i) A multichannel video programming distributor may
satisfy its obligation to negotiate in good faith for retransmission
consent with a large station group by designating a qualified MVPD
buying group to negotiate on its behalf, so long as the qualified MVPD
buying group itself negotiates in good faith in accordance with this
section.
(ii) It is a violation of the obligation to negotiate in good faith
for a qualified MVPD buying group to disclose the prices, terms, or
conditions of an ongoing negotiation or the final terms of a
negotiation to a member of the qualified MVPD buying group that is not
intending, or is unlikely, to enter into the final terms negotiated by
the qualified MVPD buying group.
(iii) A large station group has an obligation to negotiate in good
faith for retransmission consent with a qualified MVPD buying group.
(A) ``Qualified MVPD buying group'' means an entity that, with
respect to a negotiation with a large station group for retransmission
consent--
(1) Negotiates on behalf of two or more multichannel video
programming distributors--
(i) None of which is a multichannel video programming distributor
that serves more than 500,000 subscribers nationally; and
(ii) That do not collectively serve more than 25 percent of all
households served by multichannel video programming distributors in any
single local market in which the applicable large station group
operates; and
(2) Negotiates agreements for such retransmission consent--
(i) That contain standardized contract provisions, including
billing structures and technical quality standards, for each
multichannel video programming distributor on behalf of which the
entity negotiates; and
(ii) Under which the entity assumes liability to remit to the
applicable large station group all fees received from the multichannel
video programming distributors on behalf of which the entity
negotiates.
(B) ``Large station group'' means a group of television broadcast
stations that--
(1) Are directly or indirectly under common de jure control
permitted by the regulations of the Commission;
(2) Generally negotiate agreements for retransmission consent under
this section as a single entity; and
(3) Include only television broadcast stations that collectively
have a national audience reach of more than 20 percent;
(3) Definitions. For purposes of this section and Sec. 76.64, the
following definitions apply:
(i) ``Local market'' has the meaning given such term in 17 U.S.C.
122(j); and
(ii) ``Multichannel video programming distributor'' has the meaning
given such term in 47 U.S.C. 522.
(4) Totality of the circumstances. In addition to the standards set
forth in paragraph (b)(1) of this section, a Negotiating Entity may
demonstrate, based on the totality of the circumstances of a particular
retransmission consent negotiation, that a television broadcast station
or multichannel video programming distributor breached its duty to
negotiate in good faith as set forth in paragraph (a) of this section.
* * * * *
[FR Doc. 2020-02923 Filed 2-18-20; 8:45 am]
BILLING CODE 6712-01-P