What is the function of the Federal Communications Commission (FCC)?
The independent U.S. Federal Communications Commission (FCC) regulates all interstate and international communications. The FCC protects consumers and companies by standardizing media and communication. It allocates cellular and wireless access, controls media firm mergers and acquisitions (M&A), safeguards IP, and sets content and distribution requirements for all U.S. media organizations. Congress oversees the agency, and investors watch it.
Understanding the Federal Communications Commission (FCC)
As mentioned above, the FCC is independent and reports to the U.S. government. The 1934 Communications Act regulated domestic and overseas wire and radio communications. FCC, “Communications Act of 1934.” Satellite, TV, and internet communications were included in the statute. The agency covers all 50 states, D.C., and U.S. territories.
In the U.S., the FCC is the primary regulator of communications law, regulation, and technological innovation. Its goal is to enhance global communications.
- economic help to ensure communications sector competitiveness
- media regulatory reform to support new technologies
- encouraging broadband network competition, innovation, and investment
- improving national communication infrastructure
One of the five president-appointed commissioners serves as the agency’s chair. The Senate confirms each commissioner for five years. Commissioners employ almost 1,500 people. They have many departments and offices that handle distinct commission functions.
FCC activities influence public and private communications enterprises. Thus, stock market investors actively observe its moves because the agency’s regulations and resolutions affect corporate business lines and people’s assets.
A Federal Communications Commission (FCC) Regulation
The agency regulates communications equipment manufacture, radio and TV decency, and competition. The commission’s Office of Administrative Law Judges hears disputes and interprets agency regulations.
The commission’s enforcement bureau investigates, punishes, and initiates administrative judgments against Communications Act and FCC violations. FCC penalties can reach tens of millions of dollars for some infractions, affecting company value.
Federal Communications Commission (FCC) Approvals
The FCC’s “notice and comment” procedure establishes rules and regulations. The agency notifies the public and allows comments before creating, amending, or developing practices. These techniques may significantly impact communication market competition.
Communications company M&As need FCC permission. This clearance procedure protects consumers and prevents monopolies, but it can lead to uncertainty for corporations and investors during FCC scrutiny. Some don’t get approval, causing delays for these firms.
The FCC has long regulated radio, TV, and phone companies. By designating broadband ISPs as common carriers under Title II of the Communications Act in 2015, the commission expanded its power.
Broadband providers were listed as common carriers by the commission 3-2 on party lines. This vote shows how the political affiliation of appointed commissioners may affect regulation interpretation.
President Biden’s FCC
President Joe Biden named interim chair Jessica Rosenworcel on January 21, 2021. Rosenworcel worked in communications policy and public service before her appointment. As senior communications counsel for the Senate Committee on Commerce, Science, and Transportation, she practiced communications law.
The commission should launch numerous major projects under her supervision. The agency is expected to change more under Biden than under Trump. This includes:
- Changing Section 230, which shields content providers and users from “liability for publishing, removing, or restricting access” to others’ material
- Advanced 5G technologies
- Security nationwide and broadband access in underserved regions
Broadband privacy, agency openness, industry mergers and ownership, and penalty and regulatory enforcement may be addressed.
Net Neutrality
This is a big issue the administration should address. The Obama administration established net neutrality policies. ISPs had to provide “equal and non-discriminatory access” to internet material. Simply put, the regulations prevented businesses from slowing down and restricting user content. In 2017, Trump repealed these regulations.
Biden suggested charging providers that violate these restrictions by restricting or prioritizing information to “create artificial scarcity and raise consumer prices.” Through regulation, the commission may ban data limitations, taxes, and rates.
Deadlock 2-2
The panel was deadlocked when then-President Donald Trump’s chair, Ajit Pai, resigned. Two Republicans and two Democrats are commissioners.
- The leading Republican on the commission is Brendan Carr. Trump nominated him, and the Senate confirmed him in January 2019.
- In 2020, the Senate confirmed Republican Trump nominee Nathan Simington.
- Biden selected Democratic acting chair Jessica Rosenworcel.
- Trump nominated and confirmed Democrat Geoffrey Starks in 2019.
President Joe Biden nominated Gigi Sohn for the FCC position. Sohn, a Georgetown Law Institute for Technology Law & Policy Distinguished Fellow and Benton Senior Fellow and Public Advocate, has long advocated for free and low-cost broadband internet. Naturally, the parties opposed Sohn’s FCC confirmation. The Senate Commerce Committee advanced Sohn’s nomination in March 2022, which the Senate will consider.
What caused the FCC?
The FCC regulates interstate and international wire and radio communications. This obligation now covers satellite, TV, wireless, and internet communications. The FCC regulates all 50 states, D.C., and U.S. territories.
The FCC was founded when?
The 1934 Communications Act established the FCC.
The meaning of net neutrality
In 2015, the Obama administration implemented net neutrality to restrict companies, including ISPs, from censoring content and limiting internet access. Thus, these firms have to guarantee equitable online content access. Trump repealed these regulations in 2017.
Who runs the FCC?
Congress oversees the independent FCC.
The Judgment
The 1934 Communications Act created the FCC. It regulates communications networks’ access, competition, innovation, media landscape, and communication techniques to benefit companies and consumers. Though autonomous, it reports to the government. Investors watch it because its choices affect the stock market.
Conclusion
- Congress oversees the independent FCC.
- The FCC regulates all international and interstate communications.
- It protects consumers and companies while standardizing media and communication methods.
- Congress oversees the agency, and investors watch it.
- The FCC has a chair and five commissioners selected by the president.
