US media deregulation bill faces veto

The planned deregulation of US media ownership laws, which would have benefited media giants such as Rupert Murdoch's News Corporation, looked unlikely to go ahead today as the House of Representatives prepared to veto the controversial plans.

Leading Republicans accepted last night they were unlikely to prevent the House of Representatives from vetoing plans by the US regulator, the Federal Communications Commission (FCC), to increase the number of television stations media companies can own.

Despite intensive lobbying by some of the biggest US media companies, the house looks likely to recommend that no single company can own television stations broadcasting to more than 35% of US viewers.

The FCC, under chairman Michael Powell, had recommended that ceiling be increased to 45% - plans the house was originally expected to support.

Opposition to the FCC's plans has been growing in Washington, despite the pro-deregulatory stance of many of its politicians and institutions.

Over the last few weeks a broad coalition of left and right wing groups, including the deeply conservative and influential National Rifle Association and the left-leaning National Organisation for Women have voiced concerns about letting some of America's already substantial media groups getting any bigger.

Despite divisions within the FCC itself, where Democrats and Republicans have clashed over individual proposals, the regulator is pressing ahead with its plans that are among the most far reaching deregulatory steps proposed by the government of President Bush.

Yesterday the FCC was forced to issue a strongly worded denial of claims that chairman Michael Powell, son of secretary of state Colin Powell, was on the verge of quitting.

An article in Time Magazine suggested Mr Powell had become so disillusioned with opposition to the FCC plans that he would resign from the regulator by the autumn.

The House of Representatives and the Senate are expected to come up with a compromise bill later this year.