“Despite the time-sensitive nature of these proceedings, the Commission deliberately took no action and failed to respond to the application for more than three months,” the judges wrote. “For example, the Commission did not seek answers from affected parties, conduct fact-finding, obtain supplemental briefing, request public comment, or schedule and hold oral arguments.”
Rather than review the application on its merits, FCC Chairman Brendan Carr proposed this month that the agency “summarily dismiss the application as not subject to review by the Commission,” according to the court’s decision. The judges said the FCC’s inaction under these “extraordinary circumstances” amounted to a “constructive denial.” They also ruled that the FCC Media Bureau’s public notice was a final order, making it subject to judicial review.
Fourth Circuit says FCC provided no legal justification
The Fourth Circuit noted that the FCC recognized in 1991 that only candidates—not independent groups supporting or opposing candidates—qualify for minimum advertising rates, also known as the lowest unit charge (LUC). However, the FCC’s March public notice presented its new guidance as a “reminder” and described it as a rewording of earlier Media Bureau guidance concerning LUC eligibility.
The judges said the FCC’s notice failed to identify prior agency guidance supporting the claim that joint fundraising committees affiliated with political parties and noncandidate groups may qualify for LUC rates. “Rather than heeding the plain language of the LUC requirement, the Notice requires broadcasters to extend LUC to joint fundraising committees with political parties and non-candidates without providing any legal basis to justify the rule,” the ruling stated.
The FCC’s notice cited federal law stating that candidates and their authorized committees share the rights granted to them. It also said candidates may designate authorized committees “established solely for the purpose of joint fundraising.”
Source: arstechnica.com