In fact, it was not long after its inception that many of its powers, especially those involving the denial of a license, were challenged in court. Other court cases questioned the underpinnings of the 1927 act, including (1) whether the public-interest standard could be used to deny licenses on the basis of programming content and (2) whether broadcasting could even be considered interstate commerce. Finally, President Franklin D. Roosevelt wrote a letter to Congress asking for new legislation that would better harness the evolving industry of telecommunications, and Congress answered with the Communications Act of 1934.
Design of the Act
The Communications Act of 1934 acknowledges the First Amendment status of broadcasting, yet it also provides a rationale for regulation despite this status. This rationale is built on the premise that telecommunication operators must act "in the public interest, convenience, and necessity." The reason for this is twofold. First, the airwaves are considered to be a publicly owned natural resource. Therefore, as with any scarce resource, the government is entitled to ensure that this public property is used as a public service.
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