Could the Federal Communications Commission’s (FCC) ruling on media ownership impact the exchange traded fund (ETF) that tracks the sector?

The two rules approved on Tuesday are that no company can control more than 30% of the market, and newspapers are allowed to buy radio and television stations in the largest cities, reports Stephen Labaton at the New York Times. The first rule puts some regulation into the industry, and the second rule is meant to give a sorely needed boost to the hurting newspaper industry.

The PowerShares Dynamic Media (PBS) ETF could be affected if the changes stick. The fund is down 10% year to date. Among its holdings are Walt Disney, which owns ABC (DIS, 4.8%) and CBS Corp. (CBS, 4.3%).

Not many people seem very happy about the new rules, and they’re almost certainly going to be reviewed by courts in the next few months, so stay tuned.

Tags: Leisure & Entertainment, Media, Sector ETFs, Telecommunications