FCC Asks Court to Reject Council Tree Lawsuit Challenging DE Bidding Cap Limits
The FCC said the 3rd U.S. Circuit Court of Appeals should reject Council Tree arguments that the agency wrongly restricted it as a designated entity to a $150 million bidding credit in the incentive auction, in violation of the Communications…
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Act. “On the basis of its overbroad and mistaken reading of the statute, Council Tree adopted a strategy to acquire significant spectrum in the Broadcast Incentive Auction by reliance on a presumed level of bidding credits that exceeds the cap that the FCC established,” the FCC said in a pleading with the court. “But nothing in the Communications Act mandates any particular level of bidding credits or requires the FCC to ensure that Council Tree successfully implements its bidding strategy, however ambitious that may be.” The $150 million bidding credit cap “surely gives small businesses ‘the opportunity to participate’ in that auction, and thus is consistent with the statute,” the FCC said. “It is also a reasonable decision, reasonably explained.” Council Tree didn't comment Wednesday.