The case of Federal Communications Commission v. American Broadcasting Co., Inc. in 1953 revolved around the issue of whether or not the Federal Communications Commission (FCC) had the authority to regulate network broadcasting contracts and practices under its statutory mandate to ensure "public convenience, interest, or necessity." The Supreme Court ruled in favor of FCC stating that it did have such power. This decision was based on a broad interpretation of Section 303(g) and (r) of the Communications Act which grants FCC comprehensive powers for regulating interstate radio communication by wire and radio so as to make available a rapid, efficient nationwide communication service with adequate facilities at reasonable charges.

The dissenting opinion in the case of Federal Communications Commission v. American Broadcasting Co., Inc. argued that the majority's decision was a departure from established principles governing administrative agencies' power and discretion, particularly regarding licensing decisions. The dissent emphasized that while Congress had given the FCC broad powers to regulate broadcasting, it did not intend for these powers to be used arbitrarily or without due process. It criticized the majority for allowing the FCC to revoke ABC's licenses based on its own subjective judgment about what would best serve "public interest," rather than concrete evidence of misconduct or failure to meet specific regulatory standards by ABC. Furthermore, it warned against setting a dangerous precedent where an agency could effectively punish a regulated entity simply because it disagreed with its business practices or programming choices.