United States v. Radio Corp. of America

Background

The Government sued a major broadcast network and its parent company, alleging they conspired to swap a Cleveland television station for one in Philadelphia to gain control of top markets. Westinghouse, which owned the Philadelphia station, agreed to the exchange and the Federal Communications Commission (FCC) reviewed and approved the transfer after investigation. The Justice Department did not intervene in the FCC process and filed its antitrust complaint more than ten months after the license was granted and the exchange was completed.

Reasoning

The Court asked whether FCC approval of the exchange prevents the Government from bringing a separate antitrust lawsuit. Looking at the Communications Act and its history, the Court concluded Congress did not give the FCC authority to decide antitrust violations as such. The Court also explained that broadcasters are not regulated like common carriers with fixed rates, so the usual reasons for deferring to an agency (the primary jurisdiction doctrine) do not apply. Because the FCC only decides whether a transfer serves the “public interest,” its approval does not bind federal courts on antitrust questions.

Real world impact

The ruling means federal antitrust enforcement can proceed even after the FCC licenses a station swap; FCC approval does not immunize broadcasters from separate antitrust suits. The case was sent back to the trial court for further proceedings on the Government’s claims, so the decision does not resolve the antitrust merits but clears the way for litigation to continue.

Dissents or concurrances

Justice Harlan agreed with the outcome, stressing that an FCC finding of public interest cannot bind courts or exempt licensees from antitrust laws. Frankfurter and Douglas did not participate.