NEWSReport No. DC 95-54 ACTION IN DOCKET CASE April 5, 1995 COMMENTS SOUGHT ON NOVEMBER 1995 EXPIRATION OF FIN/SYN RULES (MM DOCKET 95-39) The Commission has issued a Notice of Proposed Rule Making to provide an opportunity for interested parties to comment concerning the remaining financial interest and syndication (fin/syn) rules prior to their scheduled expiration. In a 1993 order, the Commission committed itself to undertake this review. Unless the Commission takes further action, the fin/syn rules will expire on November 10, 1995. The burden of proof is on parties opposing expiration of the rules to show "an excellent, a compelling reason" for their continuation. The Commission is also asking for comment on whether it should amend the timetable previously established to accelerate the expiration date for the remaining fin/syn rules in the event parties arguing for the continuation fail to carry their burden of proof. The fin/syn rules, originally adopted in 1970, placed significant restrictions on the ability of the established networks (ABC, CBS, NBC) to acquire financial interests or syndication rights in television programming or to engage in the active syndication of such programming. The Commission imposed these constraints to limit network control over television programming and thereby encourage the development of a diversity or programs through diverse sources of program services. In 1990, recognizing the increased competition facing the networks, the Commission initiated a rulemaking proceeding to assess the continuing need for the fin/syn rules, and in 1991, it issued a decision relaxing certain aspects of the rules but retaining a modified fin/syn regime. This decision was overturned, however, by a federal appellate court. Schurz Communications, Inc. v. FCC, 982 F.2d 1043 (7th Cir. 1992). (over) - 2 - In response to the court's decision, and after receiving additional public comment, the Commission further relaxed the fin/syn rules and established a timetable for the complete elimination of the rules. In particular, the Commission eliminated immediately restrictions on network acquisition of financial interests and passive syndication rights in network programming, except for certain reporting requirements. The Commission continued for an interim period restrictions on active network syndication of television programming and on substantial network involvement in the first-run market. It also retained anti-warehousing safeguards to prevent a network from withholding programs from the syndication market. The Commission also scheduled elimination of all remaining fin/syn constraints for the date two years after the entry of a court order modifying antitrust consent decrees that imposed prohibitions on ABC, CBS and NBC that essentially replicated the Commission's 1970 fin/syn rules. The court order was entered on November 10, 1993. Action by the Commission April 5, 1995, by Notice of Proposed Rulemaking (FCC 95-144). Chairman Hundt, Commissioners Quello, Barrett, Ness and Chong. - FCC - News Media contacts: Audrey Spivack and Rosemary Kimball at (202) 418-0500. Mass Media Bureau contact: Charles W. Logan at (202) 776-1653.