Key facts
- The FCC will vote on rescinding the 85-year-old rule limiting TV station ownership to 39% of U.S. households.
- FCC Chair Brendan Carr stated the new proposal would allow the FCC to approve deals exceeding the cap if they promote the public interest.
- Broadcasters like Nexstar and Sinclair, along with the National Association of Broadcasters, support the move.
- Critics, including some House Democrats and Newsmax CEO Chris Ruddy, fear increased consolidation will harm local news and raise prices.
- The FCC previously waived the 39% rule to approve Nexstar's $3.54 billion acquisition of Tegna, a deal currently halted by a court challenge.
FCC Chair Brendan Carr has scheduled a vote to rescind an 85-year-old rule that bars broadcasters from reaching more than 39% of U.S. television households. Carr stated the agency would vote to lift the cap in favor of a new case-by-case approach, allowing approval of deals exceeding the limit if they promote the public interest.
Broadcasters, including Nexstar and Sinclair, and the National Association of Broadcasters, have praised the move, arguing that current restrictions hinder competition and investment in local news. They contend that these rules are outdated in the current media landscape.
However, critics, such as some House Democrats and Newsmax CEO Chris Ruddy, fear that relaxing the cap will lead to excessive concentration of station ownership, potentially reducing local news availability and increasing costs for consumers. Some opponents also argue that only Congress has the authority to lift the cap, not the FCC.
The FCC previously waived the 39% rule to approve Nexstar's $3.54 billion acquisition of Tegna, a deal that would expand Nexstar's reach to 80% of U.S. TV households. This acquisition is currently halted pending a court challenge. President Donald Trump had previously expressed support for this deal.