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National Broadcasting Co. v. US

The FCC promulgated regulations to address antitrust concerns about chain broadcasting, where radio stations simultaneously broadcast identical programs. NBC and other major networks challenged the FCC's authority. The Supreme Court held that the Communications Act of 1934 authorized the FCC to regulate licensing as required by the "public interest, convenience, or necessity." The Court reasoned the FCC could regulate radio traffic composition and prevent wasteful licensing that harms the public. Agreements limiting stations' programming granted major networks an illegal monopoly. The regulations did not violate the First Amendment as radio access requires licensing and is not freely available to all. Congress also had power under the Commerce Clause to establish this licensing system.

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Reid Murtaugh
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1K views1 page

National Broadcasting Co. v. US

The FCC promulgated regulations to address antitrust concerns about chain broadcasting, where radio stations simultaneously broadcast identical programs. NBC and other major networks challenged the FCC's authority. The Supreme Court held that the Communications Act of 1934 authorized the FCC to regulate licensing as required by the "public interest, convenience, or necessity." The Court reasoned the FCC could regulate radio traffic composition and prevent wasteful licensing that harms the public. Agreements limiting stations' programming granted major networks an illegal monopoly. The regulations did not violate the First Amendment as radio access requires licensing and is not freely available to all. Congress also had power under the Commerce Clause to establish this licensing system.

Uploaded by

Reid Murtaugh
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
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National Broadcasting Co. v.

United States
United States Supreme Court
319 U.S. 190 (1943)

Key Search Terms: antitrust, broadcasting, Federal Communications


Commission (FCC), (NBC), monopoly, radio

Facts
NBC and other major network radio stations challenged the FCC’s power to
enforce its recommended changes to radio broadcasting regulations. Prior to
the promulgation of these regulations, the FCC’s committee held hearing for six
months to specifically address antitrust concerns about chain broadcasting.
Chain broadcasting is the “simultaneous broadcasting of an identical program
by two or more connected stations.” Congress granted the FCC the power to
regulate the licensing of stations through the Communications Act of 1934
(“Act”).

Issue
Did Congress authorized the FCC to exercise the power asserted by the Chain
Broadcasting Regulations, and if it did, does the Constitution forbids the
exercise of such authority?

Holding
The standard set by Congress was that regulations must be for “public interest,
convenience, or necessity.” The Court reasoned that the Act itself established
that the FCC’s powers extended to the regulation of the composition of radio
traffic. The Court further reasoned that because of the limited number of radio
stations, they cannot be left to wasteful use without harm to the public
interest. Furthermore, if a licensee enters into a contract with a network
organization, which limits his ability to make the best use of the radio facility
assigned to him, he does not serve the public interest. Agreements like this
have essentially granted the major broadcasting companies a monopoly on the
radio market. Thus, the FCC has the power to regulate the licensing of
stations in the interests of “public interest, convenience, or necessity.” The
Court also held that the FCC regulations were constitutional. The regulations
were not a violation of the First Amendment because unlike other modes of
expression, radio inherently is not available to all. Thus, free speech does not
include the right to use the facilities of radio without a license. Finally, the
Court held that Congress also has power under the Commerce Clause to
establish a licensing system to control interstate communications.

Summarized by: Lucy Wess

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