Key facts
- Cable lobby groups will sue the FCC to block the repeal of the National Television Ownership Rule.
- The rule limits the number of broadcast TV stations a single company may own to 39 percent of US TV households.
- Cable groups argue the FCC lacks the authority to repeal a limit set by Congress.
- The FCC voted to eliminate the TV ownership rule on August 6.
- The cable lobby represents major providers including Comcast, Charter, and Cox.
Cable industry groups have informed the Federal Communications Commission (FCC) that they intend to file a lawsuit to prevent the agency's recent repeal of the National Television Ownership Rule. This rule restricts the number of broadcast television stations a single entity can own.
The cable lobby, representing major providers like Comcast, Charter, and Cox, argues that the FCC overstepped its authority by repealing a limit established by Congress over 20 years ago. They contend that allowing larger broadcast groups to expand will grant them greater leverage to demand higher retransmission fees, ultimately leading to increased monthly cable bills for consumers.
The FCC voted to eliminate the ownership cap on August 6, with the repeal order officially published on October 1 after a significant delay. This delay may have been due to the FCC preparing its legal defense, as it claims the authority to dismantle a congressionally mandated limit. FCC Chairman Brendan Carr has stated that a case-by-case review process for mergers will allow the agency to approve deals that serve the public interest while rejecting those that do not.
The National Television Ownership Rule currently prohibits any single broadcast station owner from reaching more than 39 percent of US television households. Congress set this cap in 2004. The cable groups' petition asserts that Congress's decision to establish a precise 39 percent threshold was unambiguous and that the FCC's repeal violates this legislative action.
While the petition to the FCC is a procedural step, the cable groups plan to file their lawsuit in a US appeals court. They may also seek a preliminary injunction to maintain the ownership cap during the litigation. The FCC, in its order, argued that Congress directed the commission to modify rules rather than enact a fixed cap, and that the agency has the authority to change or repeal the rule if it no longer serves the public interest, particularly if done outside the quadrennial review process.
Media advocacy group Free Press also plans to appeal the decision, with its General Counsel Matt Wood stating that "Changing this limit requires congressional action, but Carr doesn’t care." He further alleged that the repeal would facilitate consolidation by "Trump-aligned billionaires" and lead to job cuts for journalists.
Previously, the FCC under Chairman Carr waived the ownership rule to approve the Nexstar Media Group purchase of Tegna, a deal that would reach 80 percent of US TV households. A federal judge ordered Nexstar and Tegna to remain separate pending an antitrust lawsuit by DirecTV, citing potential harm to consumers through higher retransmission fees.