White House Won't Contest Media Ownership Rules in Major Victory for Media Activists

The FCC, led by outgoing chairman Michael Powell, had approved new regulations in 2003 that would have allowed giant media corporations to own as many as three television stations, eight radio stations and a cable operator, as well as a newspaper in a single city.

The FCC's attempt to allow for greater media consolidation resulted in a massive grassroots organizing effort. The FCC received more than 750,000 comments on the issue -- 99 percent of the comments opposed allowing for greater media consolidation.

Most of the country's major media corporations had lobbied the FCC to approve the changes. The companies included Viacom (which owns CBS), NBC, News Corporation which owns Fox, the Tribune Company, Gannett and The New York Times Company.

In 2003, the Prometheus Radio Project of Philadelphia filed a lawsuit to block the implementation of the FCC rule changes. In June 2004 a federal appeals court ruled in favor of Prometheus.

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