Federal Communications Commission v. Beach Communications, Inc.
Supreme Court
508 U.S. 307 (1993)
Beach Communications, Inc. operated satellite systems serving multiple buildings under different ownership. The FCC (defendant) interpreted the Cable Communications Policy Act of 1984 to subject such multi-building, different-ownership satellite systems to franchise regulation while exempting satellite systems serving multiple buildings under common ownership. The court of appeals found no rational basis for treating the two types of systems differently and struck down the distinction as an equal-protection violation, and the FCC sought Supreme Court review.
Whether economic regulation that treats different classes of regulated entities differently, without implicating a suspect classification or fundamental right, must be struck down as unconstitutional unless a court can identify an actual, evidence-supported rational basis for the distinction.