FCC Won't Impose More Rules To Prevent TV Channel-Cable Provider Disputes From Resulting In Channel 'Blackouts'

The U.S. Federal Communications Commission issued an update on Thursday, in which it commented on the ongoing dispute between DISH Network Corp DISH and Tribune Media Co TRCO.

Dish Network initiated a lawsuit against Tribune Broadcasting, in which it accused Tribune of deliberately spreading inaccurate statements about the satcaster. On June 12, the dispute escalated, as Tribune's 42 stations and WGN America cabler went dark on Dish's network.

Related Link: Treasury Department To Hold Hearing On Corporate "Earnings Stripping"

Leading up to the shutdown, Tribune created various marketing materials and websites asserting that Dish ranks last in customer service among MVPD providers. As a result, Dish's suit argues that Tribune's actions represent "interference with contract and prospective economic advantage” and has damaged the company’s goodwill with its customers.

FCC: Consumers Suffer

The FCC said in a blog post that when two companies, such as Dish and Tribune, fail to reach an agreement or extend an agreement, consumers "suffer" through a blackout.

FCC Chairman Tom Wheeler summed both companies to Washington in an attempt to re-open dialogue and come to a new agreement. However, that failed to produce an agreement, and the Media Bureau has since issued information requests to enable the FCC in determining if the companies are meeting their responsibilities to negotiate in good faith.

The FCC's blog also noted if the review of documents shows a dereliction of duty at one or both of the companies, the agency "will not hesitate to recommend appropriate Commission action."

"And we do not need one of the parties to a negotiation to cry foul before acting in the public interest," the blog added. "The Commission can investigate a potential good faith violation on its own and take enforcement action when a party fails to fulfill its statutory obligations."

Shares of Dish were trading higher by 0.63 percent at $52.85 Thursday afternoon, while shares of Tribune Media were higher by 1.89 percent at $39.85.

Did you like this article? Could it have been improved? Please email feedback@benzinga.com to let us know!