[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1125 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                S. 1125

 To restrict the authority of the Federal Communications Commission to 
     review mergers and to impose conditions on licenses and other 
  authorizations assigned or transferred in the course of mergers or 
 other transactions subject to review by the Department of Justice or 
                     the Federal Trade Commission.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 26, 1999

    Mr. McCain (for himself, Mr. Ashcroft, Mr. Hatch, and Mr. Mack) 
introduced the following bill; which was read twice and referred to the 
           Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
 To restrict the authority of the Federal Communications Commission to 
     review mergers and to impose conditions on licenses and other 
  authorizations assigned or transferred in the course of mergers or 
 other transactions subject to review by the Department of Justice or 
                     the Federal Trade Commission.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Telecommunications Merger Review Act 
of 1999''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) A stated intent of the Congress in enacting the 
        Telecommunications Act of 1996 was to reduce regulation.
            (2) Under existing law, the Department of Justice and the 
        Federal Trade Commission exercise primary authority to review 
        all mergers, including telecommunications industry mergers. The 
        Federal Communications Commission has only limited authority 
        under the Clayton Act to review telecommunications industry 
        mergers.
            (3) The Department of Justice and the Federal Trade 
        Commission have extensive expertise in analyzing issues of 
        industry concentration and its effects on competition. The 
        Federal Communications Commission has only limited expertise in 
        analyzing such issues.
            (4) Notwithstanding the limitations on its Clayton Act 
        jurisdiction and on its substantive expertise, the Federal 
        Communications Commission exercises broad authority over 
        telecommunications industry mergers pursuant to the nonspecific 
        public interest standard and other provisions in the 
        Communications Act of 1934 that allow it to impose terms and 
        conditions on the assignment and transfer of licenses and other 
        authorizations.
            (5) The Federal Communications Commission's exercise of 
        broad authority over telecommunications industry mergers 
        overreaches its intended statutory authority and its 
        substantive expertise and produces delay and inconsistency in 
        its decisions.
            (6) Under existing law, parties to a proposed 
        telecommunications industry merger are unable to proceed 
        without the prior approval of the Federal Communications 
        Commission, even if the Department of Justice or the Federal 
        Trade Commission have already approved the merger.
            (7) The Federal Communications Commission's existing 
        rulemaking and enforcement prerogatives constitute normal and 
        effective means of assuring that all licensees, including 
        parties to a telecommunications industry merger, operate in the 
        public interest.
            (8) The primary jurisdiction and preeminent expertise of 
        the Department of Justice and the Federal Trade Commission on 
        all matters involving industry concentration and its effects on 
        competition, combined with the Federal Communications 
        Commission's existing rulemaking and enforcement prerogatives, 
        make the exercise of separate telecommunications industry 
        merger approval authority by the Federal Communications 
        Commission unnecessary.
            (9) Because the duplication of effort, inconsistency, and 
        delay resulting from the Federal Communications Commission's 
        review of telecommunications industry mergers is unnecessary, 
        it imposes unwarranted costs on the industry, on the 
        Commission, and on the public, and it fails to serve the public 
        interest.

SEC. 3. REPEAL OF MERGER APPROVAL AUTHORITY.

    Section 11(a) of the Clayton Act (15 U.S.C. 21(a)) is amended by 
striking ``in the Federal Communications Commission where applicable to 
common carriers engaged in wire or radio communication or radio 
transmission of energy;''.

SEC. 4. REPEAL OF AUTHORITY TO CONDITION LICENSES, ETC.

    (a) Basic Administrative Authority.--Section 4(i) of the 
Communications Act of 1934 (15 U.S.C. 154(i)) is amended by adding at 
the end thereof the following: ``The authority of the Commission to 
impose terms or conditions on the transfer or assignment of any license 
or other authorization assigned or transferred in a merger or other 
transaction subject to review by the Department of Justice or the 
Federal Trade Commission is subject to section 314.''.
    (b) Public Convenience and Necessity.--Section 214(c) of the 
Communications Act of 1934 (47 U.S.C. 214(c)) is amended by inserting 
after ``require.'' the following: ``The authority of the Commission to 
impose terms or conditions on the transfer or assignment of any such 
certificate assigned or transferred in a merger or other transaction 
subject to review by the Department of Justice or the Federal Trade 
Commission is subject to section 314.''.
    (c) Restrictions and Conditions Necessary To Carry Out 1934 Act; 
Treaties; International Conventions.--Section 303(r) of the 
Communications Act of 1934 (47 U.S.C. 303(r)) is amended by adding at 
the end thereof the following: ``The authority of the Commission under 
this paragraph to impose terms or conditions on the transfer or 
assignment of any license or other authority assigned or transferred in 
a merger or other transaction subject to review by the Department of 
Justice or the Federal Trade Commission is subject to section 314.''.
    (d) Alien-Operated Amateur Radio Stations.--Section 310(d) of the 
Communications Act of 1934 (47 U.S.C. 310(d)) is amended by adding at 
the end thereof the following: ``The authority of the Commission to 
impose terms or conditions on the transfer or assignment of any 
authorization issued under this section that is assigned or transferred 
in a merger or other transaction subject to review by the Department of 
Justice or the Federal Trade Commission is subject to section 314.''.
    (e) Preservation of Competition in Commerce.--Section 314 of the 
Communications Act of 1934 (47 U.S.C. 314) is amended to read as 
follows:

``SEC. 314. PRESERVATION OF COMPETITION IN COMMERCE.

    ``(a) In General.--Notwithstanding any other provision of law, the 
Commission has no authority to review a merger or other transaction, or 
to impose any term or condition on the assignment or transfer of any 
license or other authorization issued under this Act that is proposed 
to be assigned or transferred in the course of a merger or other 
transaction, while that merger or other transaction is subject to 
review by either the Department of Justice or the Federal Trade 
Commission.
    ``(b) Communications Mergers Primarily Reviewable by DOJ and FTC.--
The Department of Justice, or the Federal Trade Commission, has primary 
authority under existing law to review mergers and other transactions 
involving the proposed assignment or transfer of any license or other 
authorization issued under this Act. The Commission may file comments 
in any proceeding before the Department of Justice or the Federal Trade 
Commission to review a merger or other transaction involving the 
proposed assignment or transfer of any license or other authorization 
issued under this Act if those comments reflect the views of a majority 
of the Commission.
    ``(c) Commission Shall Implement DOJ or FTC Decision Without 
Additional Terms or Conditions.--If--
            ``(1) the Department of Justice or the Federal Trade 
        Commission reviews a merger or other transaction involving the 
        proposed assignment or transfer of any license or other 
        authorization issued under this Act; and
            ``(2) it issues a written decision of absolute or 
        conditional approval of, or issues a written statement of 
        nonintervention in, the proposed merger or other transaction,
then the Commission shall authorize the assignment or transfer of any 
license or other authorization involved in the merger or transaction in 
accordance with the decision, if any, or as proposed, if a written 
statement of nonintervention is issued. The Commission may not impose 
any other term or condition on the assignment or transfer of the 
license or other authorization so assigned or transferred, or impose 
any other obligation on any party to that merger or transaction.
    ``(d) Commission Review of Mergers Absent DOJ or FTC 
Pronouncement.--
            ``(1) In general.--The Commission may not review any 
        application for assignment or transfer of a license or other 
        authorization issued under this Act in connection with a merger 
        or other transaction unless neither the Department of Justice 
        nor the Federal Trade Commission issues a decision or statement 
        described in subsection (c)(2) in connection with that merger 
        or other transaction.
            ``(2) 60-day turnaround.--The Commission shall conclude any 
        review of a merger or other transaction it may conduct under 
        paragraph (1) within 60 days after the date on which the 
        Department of Justice and the Federal Trade Commission, 
        whichever is appropriate, issues such a decision or statement.
            ``(3) Presumption; default approval.--In reviewing an 
        application under paragraph (1), the Commission shall apply a 
        presumption in favor of unconditional approval of the 
        application. If the Commission fails to issue a final decision 
        within the 60-day period described in paragraph (2), the 
        application shall be deemed to have been granted 
        unconditionally by the Commission.''.

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