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Appeals Court Upholds FCC Rules Restricting Size of Cable TV Companies.(Knight Ridder/Tribune Business News)

Knight Ridder/Tribune Business News, May, 2000 by Landers, Jim

May 20--WASHINGTON--A federal appeals court said Friday that the government can limit the size of cable television companies and the number of channels they use for their own programming.

The decision was a setback for the cable divisions of Time Warner Inc. and AT&T Corp., and it overturned a lower court ruling that had left the Federal Communications Commission's ownership rules in limbo.

The decision does little to alter the litigious cable television landscape, since both firms have other legal challenges against the FCC pending.

But a ruling that the government cannot limit ownership could have had a profound impact on American media.

A senior FCC official, speaking on condition of anonymity, said all of the agency's ownership...

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