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enforcing the FCC's divestiture orders against NICATV and NITCO.
In early 1987, the United States brought suit against NICATV
and NITCO in the United States District Court for the Northern
District of Indiana for enforcement of the FCC's divestiture
orders. These proceedings before the District Court are referred
to for convenience as the enforcement action.
Constitutional Challenge Action
During the course of the above divestiture action, NICATV
and NITCO later tried to raise certain issues with respect to the
constitutionality of the Communications Act and the FCC's cross-
ownership rules. The FCC and the Court of Appeals for the
District of Columbia Circuit, however, essentially held that
these constitutional issues were not properly before them.
Northwestern Ind. Tel. Co. v. FCC, 872 F.2d at 471-472.
On March 24, 1988, Rhys and NITCO filed a declaratory
judgment action against the FCC in the United States District
Court for the Northern District of Indiana, requesting that the
District Court declare unconstitutional an FCC cross-ownership
rule imposed against Rhys. In the complaint, it was alleged that
Rhys wished to buy shares of stock in NITCO from Mr. Mussman, but
was unable to do so under the FCC’s cross-ownership rules, in
light of his ownership of NICATV. These proceedings before the
District Court are referred to for convenience as the
constitutional challenge action.
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