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Broadcast powerhouse Nexstar has vociferously opposed the Federal Communications Commission's (FCC) suggestion of a $1.2 million penalty concerning its influence over New York-based station WPIX. Nexstar claims that the proposed fine is not only unconstitutional but also breaches both the Communications Act and procedural norms.

FCC Proposes Steep Fines

In a robust defense, Nexstar Media Group Inc. responded to the FCC's March allegations that accused the Texas-based conglomerate of acquiring "de facto" control over WPIX, thereby exceeding the FCC's 39% national audience cap through various local programming and marketing agreements with WPIX licensee, Mission Broadcasting Inc. According to the FCC, Nexstar's connections to WPIX-TV facilitated an "unauthorized transfer of control," prompting a fine of over $612,000. An additional penalty of the same amount was proposed for circumventing federal regulations designed to curb market dominance.

Nexstar Calls FCC's Floated $1.2M Fine Over WPIX 'Unlawful': Nexstar's Counterargument

Nexstar rebuffed these accusations in its Monday filing, asserting that the penalties aim to unjustly nullify commercial agreements previously sanctioned by the FCC when Mission acquired WPIX from Scripps Media Inc. in 2020. Nexstar highlighted the transparency of their agreements, which were attached to the WPIX application—a document that the FCC had approved without objection during its three-month review period.

The company argues that the FCC's current stance starkly contradicts its own rules and previous authorities, violates the Communications Act and the Administrative Procedure Act, and infringes on Nexstar's constitutional rights on several fronts.

Nexstar Calls FCC's Floated $1.2M Fine Over WPIX 'Unlawful': Nexstar's Plea for Regulatory Consistency

Nexstar accuses the FCC of attempting to amend its regulations and reinterpret existing rules without adequate notice or a reasoned explanation, behaviors it claims are unsupported by precedent. The broadcaster insists that if the FCC wishes to revise its policies, it should engage in notice-and-comment rulemaking rather than pursuing what Nexstar views as an inequitable enforcement action that penalizes the company for adhering to established regulations and legal norms.

Potential Outcomes and Nexstar's Stance

The FCC's notice from March 20 stated that Nexstar and Mission appeared to have "willfully and repeatedly violated several of the commission's rules" through transactions that led to Mission's acquisition of WPIX and ultimately placed Nexstar in control of operations. The FCC's proposed solutions include either selling WPIX or requiring Nexstar to divest sufficient assets to comply with the 39% national audience cap.

However, Nexstar contends that the FCC's financial analysis is flawed and asserts that the commission lacks the authority to mandate such divestitures, describing the proposed forfeiture as unprecedented and unfair to both the broadcasting industry and the broader community served by WPIX.

Industry and Community Impact

Nexstar emphasizes that the FCC's actions are not only detrimental to its interests but also to those of the broadcast industry and the communities that rely on regulated services. The company stresses the importance of reliability in FCC approvals and the negative implications of potential regulatory shifts without prior warning.

As of the latest updates, the FCC has not responded to these allegations. This ongoing dispute underscores the complexities of media regulation and the tensions between regulatory bodies and large broadcasting entities.

By challenging the FCC's proposed actions, Nexstar not only defends its operational strategies but also sets a precedent for how regulatory disputes could shape the future of broadcast media governance.