FCC Proposes Broad Foreign Ownership Certification and Reporting Requirements

The Federal Communications Commission has released a Notice of Proposed Rulemaking (NPRM) proposing expansive new certification and disclosure requirements regarding foreign adversary ownership or control. The proposed requirements would apply to anyone holding any type of FCC license, permit, or authorization, including commercial and private wireless licensees and lessees, telecom service providers (including some VoIP providers), eligible telecommunications carriers (ETCs), broadcasters, cable and multichannel video programming distributers, satellite networks, antenna structure registrants, frequency coordinators, submarine cable landing licensees, FCC auction applicants, and entities holding or applying for equipment certifications. The FCC says the goal of these new requirements would be to protect US communications networks against threats from foreign adversaries.

The FCC is proposing to require all covered entities to certify that they either are or are not owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary, as defined by the US Department of Commerce’s rule on foreign adversary control.

If the proposed rules are adopted, covered entities would have to submit their certification within 60 days of the new rules' effective date. Entities that are subject to foreign adversary control would have to disclose all 5% or greater direct or indirect ownership interests and make additional ownership disclosures. Covered entities that later become subject to foreign adversary control would need to submit a new certification within 30 days.

The FCC is seeking comment on several aspects of the proposed certification and reporting requirements, including:

• Whether the certification requirement should only apply to entities with reportable foreign adversary control
• Whether to require annual certification for all covered entities or require only an initial certification, along with a requirement to notify the FCC within 30 days of any reportable changes
• Whether to impose additional reporting requirements on entities with reportable foreign adversary control
• The level of due diligence that covered entities should be required to show when determining whether they are subject to foreign adversary control
• Whether to require all entities to report additional information regarding the extent of an entity’s interactions with a foreign adversary government, the activities of corporate officers, etc.
• Whether the proposed 60-day certification deadline would provide adequate time to complete due diligence and comply
• Whether to make the information collected publicly available

Comments on the NPRM are due July 21 and reply comments will be due August 19.

If you have questions or would like more information about the proposed new certification and reporting requirements, contact one of our attorneys.