The FCC's foreign-ownership rule published December 1, 2016 retained a distinction that percentage-only summaries can obscure. A 20 percent statutory limit applies to foreign ownership in the licensee. A separate 25 percent benchmark concerns a U.S.-organized entity controlling the licensee. The FCC can permit ownership above that parent-company benchmark through its public-interest review process; it is not automatic permission. [2016-28198]

The rule extended streamlined procedures used for common carriers and certain aeronautical licensees to broadcasters, with broadcast-specific modifications. It also revised how public-company ownership was assessed. A November 6, 2015 proposal had asked whether to extend the procedures and how to revise assessment of the 25 percent benchmark. That proposal describes the consultation, not an already effective exemption. [2016-28198][2015-28344]

Investor-specific approval was another question. The final framework generally addressed foreign investors holding more than 5 percent, in qualified circumstances more than 10 percent, or a controlling interest in the U.S. parent. Those figures were not universal safe harbors. Certain interests of 5 percent or less could still require approval, and the conditional 10 percent treatment did not cover control or efforts to influence control. [2016-28198]

The order stated January 30, 2017 effectiveness except for named provisions dependent on Office of Management and Budget approval of information collections. A separate notice would announce those dates. Publication, general effectiveness and the pending provisions thus needed separate treatment. These two FCC documents establish one proceeding's design, not evidence of resulting investment or ownership diversity. [2016-28198][2015-28344]

Source documents

  1. Review of Foreign Ownership Policies for Broadcast, Common Carrier and Aeronautical Radio Licenseeshttps://www.govinfo.gov/content/pkg/FR-2016-12-01/html/2016-28198.htm
  2. Review of Foreign Ownership Policies for Broadcast, Common Carrier and Aeronautical Radio Licenseeshttps://www.govinfo.gov/content/pkg/FR-2015-11-06/html/2015-28344.htm