WASHINGTON — The White House and lobbyists for media conglomerates scrambled Thursday to prevent a potentially embarrassing showdown between President Bush and members of his own party on an administration-backed move to deregulate business.
Only a few weeks ago, it appeared the administration would easily overcome the remaining obstacles to a federal rule allowing large communications companies to control a larger share of the nation's television markets.
But a sudden change in political currents, culminating in a House vote Wednesday, has left that outcome in doubt. The turnabout reflects an unanticipated swell of opposition in rural areas to a consolidation of local media and intensive lobbying by liberal and conservative interest groups against the new rule.
As a result, Bush could find himself in the difficult position of either abandoning his support for the rule or using his first presidential veto to try to save it. A veto would put him at odds with many Republican lawmakers.
"It's an issue that has huge momentum," said Sen. John McCain (R-Ariz.). "It's a classic populist issue. It's an indication that there is a limit to deregulation."
Although neither side can predict the outcome, the momentum has shifted in Congress toward overturning the Federal Communications Commission's decision to permit a company to own television stations that reach more than 35% of the nation's viewers. The FCC raised the cap to 45% this year.
"I do think we have our work cut out for us" in trying to stop the bipartisan stampede to overturn the change, said Bob Okun, chief Washington lobbyist for NBC, a unit of General Electric Co.
Added Ken Johnson, a spokesman for House Energy and Commerce Committee Chairman W.J. "Billy" Tauzin (R-La.), who supports the FCC decision: "It's trench warfare."
Opponents of the expanded ownership cap argue that it will constrain diversity in entertainment and news programming. Supporters say the old rule was outdated in an era of hundreds of cable channels and millions of Web sites.
The administration has sided with big television networks, such as CBS parent Viacom Inc. and Fox parent News Corp. In a letter to Congress this week, the White House said the new ownership rule would "more accurately reflect the changing media landscape ... while still guarding against undue concentration in the marketplace."
