Business 8th Edition by Marianne Jennings

Exercise 16

In March 1992, the Federal Communications Commission (FCC) proposed rules that would increase the maximum number of radio stations a company could own from 12 AM stations and 12 FM stations to 30 of each. The FCC proposed the changes because more than half of the nation's 11,000 radio stations are unprofitable and larger ownership blocks would allow some economies of scale. Critics were vocal about domination and monopolization. As a result, the FCC changed the ownership maximums to 18 FM and 18 AM stations and issued its final rules on August 5, 1992. Describe the process the FCC employed to make these changes. Explain what public outcry accomplished.