The FCC promulgated rules prohibiting cable television from broadcasting feature films more than 3 years old but less than 10 years old in addition to certain other programs. Home Box Office (HBO) argued that these rules were arbitrary and capricious and that they discriminated against cable companies. The FCC countered that the regulations were necessary to prevent siphoning-off of movies by cable companies from (free) network television. Who won this case and why?
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