type: timeline_event
The FCC, led by Chairman Michael Powell (son of Secretary of State Colin Powell), votes 3-2 along party lines to dramatically ease media ownership restrictions despite overwhelming public opposition. The new rules would increase the national TV ownership cap from 35% to 45% of U.S. households and permit cross-ownership of newspapers and broadcast outlets in the same market for the first time. This deregulation effort occurred despite public comments running 97% against further consolidation, with only 11 private citizens supporting Powell's agenda out of over 9,000 examined comments. Even conservative senators like Trent Lott opposed the move. The rules represented a continuation of regulatory capture patterns, with Powell advocating 'market-driven solutions' that primarily benefited large media corporations. The rules never took effect due to successful congressional and court challenges, including a Third Circuit Court ruling that the FCC failed to provide reasoned analysis. This episode demonstrated how regulatory agencies could pursue industry-friendly policies despite massive public opposition and bipartisan congressional resistance.