National Broadcasting Co. V. Us

National Broadcasting Co. v. United States United States Supreme Court 319 U.S. 190 (1943) Key Search Terms: antitrust, broadcasting, Federal Communications Commission (FCC), (NBC), monopoly, radio Facts NBC and other major network radio stations challenged the FCC’s power to enforce its recommended changes to radio broadcasting regulations. Prior to the promulgation of these regulations, the FCC’s committee held hearing for six months to specifically address antitrust concerns about chain broadcasting. Chain broadcasting is the “simultaneous broadcasting of an identical program by two or more connected stations.” Congress granted the FCC the power to regulate the licensing of stations through the Communications Act of 1934 (“Act”). Issue Did Congress authorized the FCC to exercise the power asserted by the Chain Broadcasting Regulations, and if it did, does the Constitution forbids the exercise of such authority? Holding The standard set by Congress was that regulations must be for “public interest, convenience, or necessity.” The Court reasoned that the Act itself established that the FCC’s powers extended to the regulation of the composition of radio traffic. The Court further reasoned that because of the limited number of radio stations, they cannot be left to wasteful use without harm to the public interest. Furthermore, if a licensee enters into a contract with a network organization, which limits his ability to make the best use of the radio facility assigned to him, he does not serve the public interest. Agreements like this have essentially granted the major broadcasting companies a monopoly on the radio market. Thus, the FCC has the power to regulate the licensing of stations in the interests of “public interest, convenience, or necessity.” The Court also held that the FCC regulations were constitutional. The regulations were not a violation of the First Amendment because unlike other modes of expression, radio inherently is not available to all. Thus, free speech does not include the right to use the facilities of radio without a license. Finally, the Court held that Congress also has power under the Commerce Clause to establish a licensing system to control interstate communications. Summarized by: Lucy Wess