Senate poised to vote on media ownership measure

WASHINGTON (Reuters) - The U.S. Senate could vote as early as Thursday night on a measure aimed at overturning new, looser media ownership restrictions in the 20 biggest U.S. cities, aides said.

Senators are expected to open debate soon on a resolution that would nullify the new, relaxed ownership rules adopted in December by the Federal Communications Commission, despite a veto threat by the White House.

The resolution, sponsored by Democratic Sen. Byron Dorgan of North Dakota, is expected to pass, but not with the two-thirds majority needed to override a veto, one aide said.

The White House Office of Management and Budget issued a statement earlier on Thursday saying the new FCC rule "furthers the public interest by providing greater financial flexibility to newspaper and broadcast outlets struggling to survive in today's intensely competitive media environment.

"The Administration supported this FCC action and strongly opposes any attempt to overturn this rule by legislative means," the statement says.

The new FCC rules eased a 1975 ban on ownership of a newspaper and broadcast outlet in a single market. Similar legislation has been introduced in the House but has not come up for a vote yet.

The FCC's Republican chairman, Kevin Martin, has said the rule was a minimal loosening of the ban aimed at helping struggling newspapers in big cities by spreading local news-gathering costs across multiple media platforms.

However, the rule has been sharply criticized by consumer groups and some lawmakers, as well as by the FCC's two Democratic commissioners.

Critics say further consolidation of the media industry would eliminate independent voices and degrade local news coverage.

They also contend that the FCC rule contains loopholes that would let media owners combine newspapers and broadcast outlets in many smaller markets around the United States, not just the top 20 cities.

The FCC ownership rules were highlighted by News Corp's unsuccessful bid to buy the newspaper Newsday from Tribune Co, and they could be a stumbling block for future acquisitions in the struggling industry.

The resolution must be passed by both chambers to overturn the FCC rule.

(Additional reporting by Thomas Ferraro; Editing by Gary Hill)