Posted: Mon., Dec. 11, 2000

Tauzin rebukes FCC

Regulators have pushed personal agendas, he sez

WASHINGTON -- Rep. "Billy" Tauzin (R-La.) on Friday charged that the FCC has steered into "unconstitutional" waters with its hardline stance on the proposed merger of Time Warner and America Online.

Tauzin also gave a vote of confidence to Michael Powell, the son of Colin Powell and the likely choice to head the Federal Communications Commission, should Texas Gov. George Bush win the White House.

Tauzin, who's likely to be the next chairman of the powerful House Commerce Committee, issued the stinging indictment at a seminar on FCC reform. He said the agency's present leadership has pushed personal agendas under the guise of promoting "public interest."

Tauzin's comments were an obvious reference to the FCC's review of the AOL/Time Warner merger, which has been hung up for months over concerns that the union would create a monopoly in high-speed cable and Internet services.

Current FCC chairman William Kennard, a Democratic appointee of the Clinton administration, has joined the two other Democrats on the five-member commission in expressing concerns over the merger, based on the concern that it would create a monopoly in high-speed cable and Internet services. Deal is still awaiting the approval of the FCC and Federal Trade Commission.

The FTC is expected to take final action on the merger later this week. Deal then goes to the FCC for final review.

"The FCC has been pernicious about pushing its own agenda," Tauzin declared, saying he's confident this will change if Bush claims the election contest and names Powell to the post.

Powell, one of two Republican commissioners now at the FCC, also spoke at the seminar on FCC reform. He agreed that the agency needs to complete regulatory reviews more "expeditiously, particularly license transfer applications in the context of mergers."

There is little doubt that the FCC would pursue a different agenda under GOP leadership, whether or not it's Powell. Republicans believe the FCC should back off from regulation and let the marketplace decide critical issues in most cases.

"In this period of incessant change, and even carnage, many will seek the shelter of regulation to protect themselves in the fierce storm of the market. Others (often the same people) will seek to affirmatively use regulation to harm or burden a competitor," Powell said.

"The FCC," he continued, "will have to be judicious in its judgments, untainted by favoritism and staunchly above the political fray, if it has any hope of being an honest, respected and meaningful actor in this new era."

The other top candidate for the post is thought to be the head of the Texas public utility commission, Pat Wood.


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