United States v. Storer Broadcasting Co.

The Federal Communications Commission (FCC) (defendant) enacted a rule known as the multiple-operations rule. This rule was intended to prevent the concentration of broadcasting licenses in the hands of a few owners. Specifically, the multiple-operations rule stated that an application for an additional radio-and-television-broadcasting license would be denied if the applicant already owned more than a certain number of stations. The rule was applied automatically to an application, without a hearing. However, applicants could file a request to have the rule waived. If the waiver request set out adequate reasons why application of the rule would be inappropriate, the FCC would hold a hearing on the request. Storer Broadcasting Company (Storer) (plaintiff) owned seven standard radio, five FM radio, and five television stations. Storer filed a lawsuit challenging the validity of the multiple-operations rule. A provision in the federal Communications Act of 1934 required that the FCC give applicants a full hearing before denying an application for a broadcast license. Among other arguments, Storer claimed that the rule violated the statutory hearing requirement because the rule allowed license applications to be denied without a hearing. The District of Columbia Circuit Court of Appeals agreed and struck certain provisions of the rule. The United States Supreme Court granted the FCC’s petition for certiorari.