Merger Review Authority of the Federal Communications Commission (CRS Report for Congress)
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| Release Date |
Revised Dec. 9, 2009 |
| Report Number |
RS22940 |
| Report Type |
Report |
| Authors |
Kathleen Ann Ruane |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
This report will explain the merger review process at the Federal Communications Commission
(FCC or Commission). Whenever companies holding licenses issued by the FCC wish to merge,
the merging entities must obtain approval from two federal agencies: the Department of Justice
(DOJ) and the FCC. The Commission and the DOJ do not follow precisely the same process or
reasoning when examining the potential effects of proposed mergers. Though both agencies have
the authority to proceed under the antitrust laws (as the DOJ must), the Commission generally
chooses to examine proposed mergers under its Communications Act authority to grant license
transfers. The act permits the Commission to grant the transfer only if the agency determines that
the transaction would be in the public interest. The public interest standard is generally broader
than the competition analysis authorized by the antitrust laws and conducted by the DOJ.
Therefore, the Commission possesses greater latitude to examine other potential effects of a
proposed merger beyond its possible effect on competition in the relevant market.
