Broadcasters Sue FCC Amid New Scrutiny of Shared Services Deals

Policy change called 'arbitrary and capricious'

Net neutrality isn't the only problem Tom Wheeler has: the Federal Communications Commission chairman also faces a new lawsuit from broadcasters.

As threatened earlier this month, the National Association of Broadcasters has sued the FCC in the U.S. Court of Appeals for the D.C. Circuit, for initiating new processing guidelines for local TV applications that involved shared service agreements.

The NAB charged that the FCC's public notice saying it would scrutinize shared service agreements was "arbitrary and capricious" because the agency failed to follow legally required procedures.

TV broadcasters in local markets have long depended on shared service agreements to cut costs by sharing traffic helicopters, facilities and administrative operations.

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