FCC ’strongly admonished’ Disney and its outside law firm, Verner...

FCC “strongly admonished” Disney and its outside law firm, Verner, Liipfert, Bernhard, McPherson & Hand, for breaching confidentiality of documents associated with AOL-Time Warner deal but declined to impose any sanctions. In 8-page order adopted Fri., Commission’s Cable Bureau concluded that “principals of Verner Liipfert and Disney were not sufficiently diligent in complying with the protective order” issued by agency on merger documents. Calling breach “significant violation” of its protective order, Commission said actions of Disney and its law firm “have not reflected the standard of conduct the Commission expects of parties in our proceedings.” But, finding “no evidence that the violation was intentional or that it reflects a pattern of noncompliance,” agency said no further action was needed. It said parties already had suffered “substantial penalty” when they were barred from inspecting confidential documents during critical phase of Commission’s merger review in fall. In future, FCC said it would consider banning parties and their counsel from access to confidential documents beginning from time it discovers their violation of protective order until one or 2 business days after they have notified agency and submitting party of violation.