United States v. Storer Broadcasting Co.

Background

The federal agency in charge of broadcasting (the FCC) changed rules to limit how many standard, FM, and television stations one person or company may own. A broadcasting company that already owned multiple stations objected, saying the rules would hurt its business and deny it a full hearing before license denials. The company also had a pending application dismissed under the new limits.

Reasoning

The Court first held the company could sue because the new rules already affected its business plans and created present injuries, like blocking expansion and risking license loss if public shareholders acquired certain stock. On the merits, the Court said Congress gave the FCC broad rulemaking power to protect the public interest. The hearing requirement for license denials does not prevent the FCC from adopting general ownership rules. But the Court explained that applicants who want an exception or waiver must present concrete reasons in their papers to justify a hearing.

Real world impact

The decision allows the FCC to enforce numerical ownership limits and to expect waiver requests to show strong reasons before holding full hearings. Broadcasters will face clearer, enforceable caps and must plan expansion accordingly. The Court reversed the appeals court and sent the case back so other objections can be considered; one stock-ownership note in the rule was left open for later review.

Dissents or concurrances

Two Justices disagreed about jurisdiction, arguing the rules did not inflict a present legal injury and that the company should not have been allowed to seek review until a license was actually denied or revoked.