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GAO Says FCC Needs More Data Before Regulating Shared Service Agreements

FCC_304The U.S. Government Accountability Office published a report saying the FCC doesn’t have enough information to regulate shared service agreements.

In its report, the GAO wrote, “FCC does not collect data and has not completed a review on the prevalence of agreements, how they are used, or their effects on its policy goals and media ownership rules.”

The report said the agreements pit cable and satellite providers and consumer groups against station group owners, with cable and satellite providers saying the deals contribute to higher rates for consumers while consumer groups say shared services agreements dilute the quality of news in local markets.

The GAO said reports were mixed on the actual effects of the agreements “because the [retrans] negotiations are subject to nondisclosure agreements, and there is no data source identifying which stations participate in agreements.”

The report concludes by telling the FCC it “should determine whether it needs to collect additional data to understand the prevalence and context of broadcast agreements and whether broadcaster agreements affect its media policy goals of competition, localism, and diversity.”

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