The Bush administration, in a blatant act of "the body's not even cold yet", has decided to abandon efforts to relax media ownership rules, less than a week after FCC Chairman, Michael Powell announced his resignation. Media deregulation was a central agenda of Powell's, and dropping it is a very clear slap at his tenure by the Bush Administration.
But the real reason behind the retreat on this issue, may be more insidious.
Officials said one reason the administration decided not to seek Supreme Court review is that some lawyers were concerned that the case could prompt the justices to review related First Amendment issues in a way that could undermine efforts by the commission to enforce indecency rules against television and radio broadcasters. Over the last year, the agency has issued a record number and size of fines, and has been pressed by some conservative and other advocacy groups to be more aggressive.
Powell had argued that deregulation was needed in light of increasing technologies and the advent of the Internet, which would keep competition healthy, despite inevitable consolidation of large media empires. To be fair, the deregulation package had been opposed by a broad coalition of Democrats and Republicans, but it's defeat is likely to mean even harsher fines for wardrobe malfunctions, the cancellation of Sponge Bob, and banning PBS children's shows that feature happy, well adjusted families.
