A US appeals court vacated a Federal Communications Commission rule relaxing limits on cross-ownership of newspapers and broadcast outlets, saying the agency failed to provide adequate notice.

The FCC in 2007 approved a rule allowing publishers to own both newspapers and broadcast stations in the biggest US cities. CBS, Clear Channel, Gannett, and Cox Enterprises challenged the FCC order for failing to relax the rule further.

The federal appeals court in Philadelphia in a 2-1 vote yesterday sent the cross-ownership rule back to the FCC for further consideration. The court upheld FCC limits on local broadcast ownership.