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The Federal Communications Commission allows a transfer of licenses after the Spanish broadcaster comes to a deal with the Department of Justice to resolve national security concerns.

If the U.S. government regulated streamers as it does broadcasters, would the Trump Administration stand better ground in objecting to Chinese influence over TikTok? The answer is undoubtedly yes, but if proof is required, check out a decision that was quietly made by theFederal Communications Commission just before Christmas. As TikTok wages a thus-far-successful fight against theU.S. government for attempting to impede the app over national security concerns, Univision has gone in a different direction. According to an opinion from the FCC's Media Bureau, Univision can exceed 25 percent foreign ownership and transfer licenses thanks to a recent deal the Spanish broadcaster made with the Justice Department. The agreement, which became public earlier this month but has until now remained under the radar, allows for much greater oversight in how Univision handles data and indeed its larger business.

Back in February, Univision struck a deal to sell a controlling stake to private equity firm Searchlight Capital, which according to filings, is controlled by partners in United States, Canada, and Germany.Mexican TV giant Televisa, which supplies much of Univision's programming, would retain its significant stake as well. The dealmaking had Univision seeking authorization from the FCC to exceed the 25 percent foreign investment benchmark with aruling permitting up to 100 percent aggregate foreign investment. That was on the table because of FCC decisions near the beginning of Ajit Pai's term as chairman that opened the doorto full foreign ownership of U.S. broadcast stations.

In this instance, Univision's move to transfer control of licenses and its petition for a declaratory ruling ran into opposition from various Hispanic groups as well as theNew York and California Attorneys General, who voiced concern howallowing Univision to become foreign-ownedwould result in less competition, diversity, and localism, contrary to the public interest.

There was also an objection filed bythe Media Research Center, which pointed to Univision's ties with the Clintons and alleged Televisa's links to Mexico's Revolutionary Institutional Party.

In the FCC's Dec. 23 opinion (read here), theMedia Bureau shrugs that off. "The Commission does not involve itself in content-based programming decisions," states the decision. "Indeed the Commission has repeatedly recognized that a licensee has broad discretion based on its right to free speech under the First Amendment to choose the programming that it believes best serves the needs and interests of the members of its viewers."

Other than forcing divestitures of some Puerto Rico stations (which Univision agrees to do), the FCC doesn't see any good reason to stand in the way of Univision's deal with foreigners, especially in light of the deal that Univision hasmade with the Justice Department.

That deal is remarkable in light of the legal fight between the U.S. government and TikTok.

According to the terms (read the full agreement below), Univision agrees to maintaina security officer who will have access to Univision's business information and be available to answer any concerns raised by the government. Additionally, Univision agrees to screen new employees given access to data and provide 30 days of notice to the Justice Department if access is providedto any foreign government, person, or entity. Furthermore, Univision agrees to provide additional notice to the DOJ of any material business change including corporate structure changes, business model changes, and even a change in headquarter location.

Univision also consents to an annual report concerning compliance and allow the government to interview its employees, among more commitments.

A day before the FCC's media bureau granted approval, Univision attorneys met with an advisor toCommissioner Geoffrey Starks to discuss the benefits of allowing greater foreign investment in U.S. stations. The lawyers touted how access to broader sources of capital would allow U.S. broadcasters to compete on a level playing field with other content providers and distributors.

Today, Univision celebrated closing its deal.

See the article here:
Univision Agrees to Greater Oversight to Win Government Nod on Foreign Ownership - Hollywood Reporter