October, 22 2013, 07:32am EDT
FCC Looks the Other Way as a New Wave of Consolidation Devours Local TV Stations
Free Press report reveals how Sinclair, Gannett and Tribune use shell companies to dodge FCC rules
WASHINGTON
On Monday, Free Press released Cease to Resist: How the FCC's Failure to Enforce Its Policies Created a New Wave of Media Consolidation. The report investigates how companies are using shady tactics to buy up TV stations and build new national media empires.
"TV consolidation is out of control, and communities are paying the price," said Free Press Research Director and report author S. Derek Turner. "Companies are swallowing up stations at an alarming rate, often through deals that violate the law. If the FCC doesn't start enforcing its rules, the damage to local competition and viewpoint diversity will be overwhelming and irreversible."
The report comes as Sinclair Broadcast Group spearheads one of the largest waves of TV consolidation in history. The report also looks at tactics used by Gannett, Media General, Nexstar and Tribune.
Among the report's key findings:
- In the first eight months of 2013, 211 full-power TV stations changed hands, the highest level in more than a decade, and the fourth-highest year on record in terms of deal value. The latest surge of consolidation is unique from prior waves in that it's taking place in small and medium-sized markets and involves companies that are not household names.
- Sinclair Broadcast Group is leading the current wave of consolidation. In the past two years alone, Sinclair has closed or announced deals that will increase its holdings from 58 to 161 stations nationwide. These deals will more than double the number of markets Sinclair serves from 35 to 78, covering nearly 39 percent of the U.S. population.
The report also details how media companies are using shell companies to evade the Federal Communications Commission's media ownership rules, making inefficient use of the scarce public airwaves and depriving communities of diverse viewpoints and in-depth news coverage. Sinclair controls or will control 46 stations nominally owned by a third party, with 40 of these stations' licenses held by shell companies Sinclair created for the express purpose of evading the FCC's ownership rules.
While Sinclair started this wave of consolidation, several other companies have come along for the ride. Firms like Gannett, Media General, Nexstar and Tribune have collectively gobbled up billions in TV assets over the past year and are taking a cue from Sinclair's playbook, using covert-consolidation arrangements like Shared Services Agreements to skirt the ownership rules.
"We've seen the effects of this so-called covert consolidation on local news already," Turner said. "Stations in the same market air the same content, often with the same on-air personalities and production teams. You can literally change the channel and find the same exact news."
In researching the shell companies held by Sinclair and the other companies that use these covert-consolidation tactics, Free Press found that in almost every instance, the only asset the shell company owns is the license, while the parent company controls the physical assets. For example, Sinclair is often the sole financier of its shell companies' debt, and it reaps nearly all of the profits the shell companies' stations bring in.
Perhaps the most damning evidence indicating the true nature of these covert arrangements is the fact that under Securities and Exchange Commission rules, these shell companies and their parent corporations are considered one and the same. When Sinclair communicates with investors, it makes no effort to hide the fact that it's the true owner of these shell companies and their stations, repeatedly referring to them as "our sidecar companies" and "our stations." In its SEC filings, Nexstar specifically lists among its assets all of the licenses held by its shell company, Mission Broadcasting.
"What's good enough for Wall Street should be good enough for Main Street," Turner said. "The FCC should recognize that these shell companies and the outsourcing agreements that govern them are merely a legal fiction created by companies like Sinclair, Gannett, Tribune and Nexstar to evade the ownership rules."
The report also details recommendations to the FCC and incoming Chairman Tom Wheeler. Turner calls on Wheeler to deny the latest transaction deals, which Free Press and other groups have challenged, and to close the numerous loopholes in its ownership rules. The report also describes how the FCC can modernize its ownership rules to better reflect the capabilities of digital broadcasting. These changes would maximize efficient use of the public airwaves and promote greater competition and diversity in the local TV market.
"If Tom Wheeler wants to be an honest regulator, he should end the dishonest practice of covert consolidation," Turner said. "By closing these loopholes, Mr. Wheeler and the FCC can give truly independent owners a chance to compete fairly to better serve their communities."
To read Cease to Resist: How the FCC's Failure to Enforce Its Rules Created a New Wave of Media Consolidation, go to: https://www.freepress.net/sites/default/files/resources/Cease_to_Resist_Oct._2013.pdf.
Free Press was created to give people a voice in the crucial decisions that shape our media. We believe that positive social change, racial justice and meaningful engagement in public life require equitable access to technology, diverse and independent ownership of media platforms, and journalism that holds leaders accountable and tells people what's actually happening in their communities.
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Experts Warn of Toxins in GM Corn Amid US-Mexico Trade Dispute
"The Mexican government is both wise and on solid ground in refusing to allow its people to participate in the experiment that the U.S. government is seeking to impose."
Mar 26, 2024
Friends of the Earth U.S. on Monday released a brief backing Mexico's ban on genetically modified corn for human consumption, which the green group recently submitted to a dispute settlement panel charged with considering the U.S. government's challenge to the policy.
Mexican President Andrés Manuel López Obrador announced plans to phase out the herbicide glyphosate as well as genetically modified (GM) or genetically engineered (GE) corn in 2020. Last year he issued an updated decree making clear the ban does not apply to corn imports for livestock feed and industrial use. Still, the Biden administration objected and, after fruitless formal negotiations, requested the panel under the United States-Mexico-Canada Agreement (USMCA).
"The U.S. government has not presented an 'appropriate' risk assessment to the tribunal as called for in the USMCA dispute because such an assessment has never been done in the U.S. or anywhere in the world," said agricultural economist Charles Benbrook, who wrote the brief with Kendra Klein, director of science at Friends of the Earth U.S.
"The U.S. is, in effect, asking Mexico to trust the completeness and accuracy of the initial GE corn safety assessments carried out 15 to 30 years ago by the companies working to bring GE corn events to market."
The group's 13-page brief lays out health concerns related to GM corn and glyphosate, and the shortcomings of U.S. analyses and policies. It also stresses the stakes of the panel's decision, highlighting that "corn is the caloric backbone of the Mexican food supply, accounting, on average, for 50% of the calories and protein in the Mexican diet."
Blasting the Biden administration's case statement to the panel as "seriously deficient," Klein said Monday that "it lacks basic information about the toxins expressed in contemporary GMO corn varieties and their levels. The U.S. submission also ignores dozens of studies linking the insecticidal toxins and glyphosate residues found in GMO corn to adverse impacts on public health."
The brief explains that "since the commercial introduction of GE corn in 1996 and event-specific approvals in the 1990s and 2000s, dramatic changes have occurred in corn production systems. There has been an approximate four-fold increase in the number of toxins and pesticides applied on the average hectare of contemporary GE industrial corn compared to the early 1990s. Unfortunately, this upward trend is bound to continue, and may accelerate."
The U.S. statement's assurances about risks from Bacillus thuringiensis or vegetative insecticidal protein (Bt/VIP) residues "are not based on data and science," the brief warns.
"The U.S. is, in effect, asking Mexico to trust the completeness and accuracy of the initial GE corn safety assessments carried out 15 to 30 years ago by the companies working to bring GE corn events to market," the document says. "The Mexican government is both wise and on solid ground in refusing to allow its people to participate in the experiment that the U.S. government is seeking to impose on Mexico."
"The absence of any systematic monitoring of human exposure levels to Bt/VIP toxins and herbicides from consumption of corn-based foods is regrettable," the brief adds. "It is also unfortunate that the U.S. government rejected the Mexican proposal to jointly design and carry out a modern battery of studies able to overcome gaps in knowledge regarding GE corn impacts."
"The U.S. government's case against Mexico has no more scientific merit than its sham GMO regulatory regime, and should be rejected by the USMCA dispute resolution panel."
Friends of the Earth isn't the only U.S.-based group formally supporting the Mexican government in the USMCA process. The Center for Food Safety sent a 10-page submission by science director Bill Freese, an expert on biotech regulation, to the panel on March 15. His analysis addresses U.S. regulation of genetically modified organisms (GMO) along with the risks of GM corn and glyphosate.
"GMO regulation in the U.S. was crafted by Monsanto, now owned by Bayer, and is a critical part of our government's promotion of the biotechnology industry," Freese said last week, referring to the company known for the glyphosate-based weedkiller Roundup. "The aim is to quell concerns and promote acceptance of GMOs, domestically and abroad, rather than critically evaluate potential toxicity or allergenicity."
His submission notes that the U.S. Food and Drug Administration "does not require a GE plant developer to do anything prior to marketing its GE crop or food derived from it. Instead, FDA operates what it calls a voluntary consultation program that is designed to enhance consumer confidence and speed GE crops to market."
"When governmental review is optional; and even when it's conducted, starts and ends with the regulated company's safety assurance—what's the point?" Freese asked. "Clearly, it's the PR value of a governmental rubber stamp."
"The Mexican government's prohibition of GM corn for tortillas and other masa corn products is fully justified," he asserted. "The U.S. government's case against Mexico has no more scientific merit than its sham GMO regulatory regime, and should be rejected by the USMCA dispute resolution panel."
In a Common Dreams opinion piece last week, Ernesto Hernández-López, a law professor at Chapman University in California, pointed out that Mexico's recent submission to the panel also "offers scientific proof and lots of it," including "over 150 scientific studies, referred to in peer-review journals, systemic research reviews, and more."
"Mexico incorporates perspectives from toxicology, pediatrics, plant biology, hematology, epidemiology, public health, and data mining, to name a few," he wrote. "This clearly and loudly responds to American persistence. The practical result: American leaders cannot claim there is no science supporting the decree. They may disagree with or dislike the findings, but there is proof."
The Biden administration's effort to quash the Mexican policy notably comes despite the lack of impact on trade. While implementing its ban last year, "Mexico also made its largest corn purchase from the U.S., 15.3 million metric tons," National Geographicreported last month.
Kenneth Smith Ramos, former Mexican chief negotiator for the USMCA, told the outlet that "right now, it may not have a big economic impact because what Mexico is using to produce flour, cornmeal, and tortillas is a very small percentage of their overall imports; but that does not mean the U.S. is not concerned with this being the tip of the iceberg."
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'Out-of-Touch Billionaire' Larry Fink Blasted for Calling 65 a 'Crazy' Retirement Age
"I love how rich people are treated as sources of great wisdom when they obviously don't know their ass from their elbow," said one economist.
Mar 26, 2024
Larry Fink, the billionaire CEO of the world's largest asset management firm, wrote in his annual letter to investors on Tuesday that it is "a bit crazy" that 65 is viewed as a sensible retirement age in the United States, drawing swift backlash from Social Security defenders and policy analysts.
Dean Baker, senior economist at the Center for Economic and Policy Research, replied that the CEO of BlackRock apparently doesn't know the U.S. already raised the full retirement age for Social Security to 67 under a law passed during the Reagan administration—a change that inflicted benefit cuts across the board.
"I love how rich people are treated as sources of great wisdom when they obviously don't know their ass from their elbow," Baker wrote on social media.
While Fink, who is 71, wrote that "no one should have to work longer than they want to," he argued that "our conception of retirement" must change, pointing specifically to the Netherlands' decision to gradually raise its retirement age and tie it to life expectancy. (Fink does not mention that life expectancy in the U.S. has been trending downward in recent years.)
"When people are regularly living past 90, what should the average retirement age be?" Fink wrote. "How do we encourage more people who wish to work longer, with carrots rather than sticks?"
Alex Lawson, executive director of the progressive advocacy group Social Security Works, told Common Dreams in response to the BlackRock CEO's letter that "Larry Fink is the definition of an out-of-touch billionaire."
"He is welcome to work as long as he wants to, but that doesn't mean that everyone else—including people who do demanding physical labor—should work until they die," said Lawson.
"Half of Americans age 65 and older are living on less than $30,000 per year. This is absurd. Congress must expand Social Security."
Roughly half of older Americans have no retirement savings, a fact that Fink acknowledged in his letter.
While progressive lawmakers such as Sen. Bernie Sanders (I-Vt.) have called on policymakers to expand Social Security benefits by forcing rich people like Fink to contribute more to the program, the BlackRock CEO argued that the private sector and federal government should team up to "ensure that future generations can live out their final years with dignity."
"What should that national effort do? I don't have all the answers," Fink added. "But what I do have is some data and the beginnings of a few ideas from BlackRock’s work. Because our core business is retirement."
Fink's letter comes days after the Republican Study Committee—a panel comprised of around 80% of the House GOP caucus—released a budget proposal calling for "modest adjustments to the retirement age for future retirees to account for increases in life expectancy" in a purported bid to "secure Social Security solvency for decades to come."
But progressives argue that rather than slashing benefits for new retirees to shore up the program, Congress should lift the payroll tax cap that allows the ultra-rich to pay the same amount into Social Security as someone who makes $168,600 a year.
Fink, for example, has a base salary of around $1.5 million. With the current payroll tax cap in place, Fink stopped paying into Social Security less than a month and a half into 2024.
"In the U.S. today, 12 million seniors are dealing with food insecurity," Sanders wrote on social media Tuesday. "Half of Americans age 65 and older are living on less than $30,000 per year. This is absurd. Congress must expand Social Security."
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'Collapse of Political Ambition': EU Shelves Nature Restoration Law
"To let this go now means we go into European elections saying the European system is not working, we do not protect nature, we do not take climate seriously," said Ireland's environmental minister. "That would be an absolute shame."
Mar 26, 2024
Environmental ministers in the European Union on Monday warned that the bloc's credibility on heading off the global biodiversity and climate emergencies is in peril following the European Council's decision to remove the historic Nature Restoration Law from its agenda after the proposal lost key support.
"We inspired others, yet now we risk arriving empty handed at COP16 [the 2024 UN Biodiversity Conference]," Virginijus Sinkevičius, E.U. commissioner for environment, oceans, and fisheries, said in a statement. "Backtracking now is... very difficult for me to accept."
The law, first introduced in 2022 and approved by European Parliament last month, faced one final hurdle to passage with the planned Council vote, but recent protests by farmers over the new nature restoration requirements helped push some previous supporters to reverse their positions on Monday.
The Nature Restoration Law, which supporters said they still intend to try to pass before E.U. elections in June, would require member states to adopt measures to restore at least 30% of habitats by 2030, working up to 90% by 2050. Member states would be required to take action to reverse pollinator populations, restore organic soils in agricultural use, increase development of urban green areas, and take other steps to protect biodiversity.
Since the farmer protests began in France and started spreading to other countries including Spain, Belgium, and Italy, policymakers have offered concessions including delayed implementation of another set of biodiversity rules calling for the agriculture industry to keep 4% of farming land free of crop production to regenerate healthy soil. The European Commission also shelved an anti-pesticide law in February in response to the protests.
As countries announced their new opposition to the Nature Restoration Law in recent days, some ministers suggested the demonstrations contributed to their decision.
Anikó Raisz, Hungary's minister of state for environmental affairs, said the law would "overburden the economy" and cited concerns about the "sensitive situation" in the agriculture sector. Italy also said it was concerned about the biodiversity rules' impact on farmers.
The World Wide Fund For Nature (WWF) accused far-right Hungarian President Viktor Orbán, who has dismissed European climate policies, of being behind the "unexpected and clearly politically motivated change in Hungary's position."
Hungary's opposition "was left unchallenged by Sweden, Poland, Finland, the Netherlands, Belgium, Austria, and Italy—who continue to either abstain or oppose," and "has now put the [Nature Restoration Law] in jeopardy again, giving Hungary's President Viktor Orbán the green light to further his own agenda and hold E.U. decision-making hostage," said WWF.
Eamon Ryan, Irish minister for the environment, accused other policymakers in the bloc of "buckling" before the farmer protests, which continued Tuesday, ahead of June elections.
"The biggest risk is the collapse of political ambition and will," Ryan said. "To let this go now means we go into European elections saying the European system is not working, we do not protect nature, we do not take climate seriously. That would be an absolute shame."
BirdLife Europe called on the E.U. the continue its efforts to pass the Nature Restoration Law before the session ends this summer.
"The E.U.'s reputation hangs in the balance in this critical year of E.U. elections," said the group. "Failure to make the law a reality also undermines the E.U.'s credibility and leadership on its international commitments to tackle the biodiversity and climate crises."
"This is definitely not the end of the story," Alain Maron, Belgium's minister for climate change, environment, energy, and participative democracy, told reporters at a press conference Monday. He added that the Belgian presidency of the European Council "will work hard in the next few weeks to find possible ways out of this deadlock, and get the file back on the agenda for adoption in another council."
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