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Republicans go on offense against FCC nominee in 2nd hearing

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Republicans go on offense against FCC nominee in 2nd hearing

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FCC nominee Gigi Sohn faced a second hearing focusing on her recusals and experience with defunct streaming service Locast.
Source: Chip Somodevilla/Getty Images News via Getty Images

Lawmakers welcomed the Federal Communications Commission nominee Gigi Sohn back for a second hearing, but Republican senators used the opportunity to express strong opposition to the pick.

The public deserves someone they can trust to remain impartial on all matters, Senate Commerce Committee Ranking Member Roger Wicker, R-Miss., said at the Feb. 9 hearing. "I question whether she's the best choice to fill this vacancy," Wicker added.

Wicker had called for a second nomination hearing after a vote on Sohn's advancement was delayed when a key Democratic committee member had a stroke. Wicker focused his questions on Sohn's recusals from commission items relating to retransmission consent and TV broadcast copyright, as well as her involvement in now-defunct TV streaming service Locast, where Sohn served as a board member. Pay TV providers pay retrans fees to broadcasters in exchange for the right to distribute their local stations. Locast distributed broadcast signals online without payment to station owners.

Relitigating Locast

Sohn in her opening statement said she had no financial liabilities in the lawsuit with Locast and that the settlement was not negotiated by her but instead by Sports Fans Coalition NY Inc., the parent company of the streaming service.

"I was never a party to the litigation," she said.

The shutdown of the service resulted in a $32 million loss, though the final payout was settled at $700,000. Sohn had not previously provided financial details around the settlement because the terms, which were leaked to the press after her first nomination hearing, were confidential.

"Respectfully Senator, I could not talk about the $700,000," Sohn said in response to questions from Wicker on her transparency. "I answered it directly and honestly as I could."

Wicker also questioned if Sohn's recusals were voluntary, to which Sohn said yes. Sohn said she sought counsel from ethics officials at the FCC on the recusal decision and that the White House did not directly encourage her choice.

Wicker later told reporters that Sohn was evasive in her responses to him and that the hearing showed she may have more conflicts of interest. He told S&P Global Market Intelligence that "it doesn't sound like she moved anyone" who was hesitant on their decision to support her.

Net neutrality, rate regulation

Beyond broadcast matters, Sen. John Thune, R-S.D., resurfaced concerns about Sohn's views on net neutrality. Sohn argued that, in an ideal situation, the FCC should reclassify broadband as a Title II service to reimpose net neutrality protections in order to spur Congress to work on a law. She emphasized that the FCC should not wait for Congress to act.

The Title II classification is controversial and unpopular among many in the broadband industry because it not only gives the FCC the regulatory authority to impose net neutrality rules but also technically enables the agency to regulate broadband rates. Under former President Barack Obama, the FCC said the agency would forbear from controlling prices.

Sen. Jerry Moran, R-Kan., asked Sohn about whether or not she supports rate regulation, to which she sternly said "no."

When "they tried to do that with cable in the 90s" it did not work out well, the FCC nominee said.

On the other side

Democratic senators on the committee were happy to support Sohn, citing her background as a public interest advocate and knowledge of telecommunications law.

Sen. Richard Blumenthal, D-Conn., called the second hearing an effort to "deadlock, disarm and disable" the FCC and emphasized that the commission must be filled with its fifth commissioner immediately.

Senate Commerce Chairwoman Maria Cantwell, D-Wash., told reporters that she believes moderate Democrat Senator Kyrsten Sinema of Arizona will vote in favor to advance Sohn out of the committee. Sinema did not show up at the hearing. When asked why, Cantwell said "a lot of people didn't show up today."

Sinema has historically sided with Republican colleagues on some broadband matters, notably the net neutrality debate.

Cantwell added that a confirmation vote for Sohn could take place earlier than April or May. Cantwell told Market Intelligence she was unsure if Sohn will face more pushback from Republicans on the full Senate floor.

If confirmed, Sohn would be the first openly LGBTQ+ commissioner on the FCC. She has served in several public interest roles throughout her career and was also an advisor to former FCC Chair Tom Wheeler.