Key facts
- The FCC voted to eliminate the national television ownership cap.
- Commissioner Brendan Carr and Commissioner Olivia Trusty voted in favor of the change.
- Senator Ted Cruz raised concerns about the FCC's authority to make this change without congressional authorization.
- Chris Ruddy, head of Newsmax, opposed the move and previously fought the Nexstar-Tegna merger.
- The Nexstar-Tegna merger, approved by waiving the cap, is currently halted by a court.
The Federal Communications Commission (FCC) has voted to eliminate the national television ownership cap, a move that will allow broadcasters to own more stations. The decision, spearheaded by Commissioner Brendan Carr and supported by Commissioner Olivia Trusty, aims to permit greater scale in the evolving media marketplace.
However, the FCC's action has drawn criticism and raised concerns on Capitol Hill, particularly regarding the agency's authority to implement such a change without explicit congressional authorization. Senate Commerce Chair Ted Cruz has voiced serious reservations, noting that Congress established the original cap. Similarly, former House Majority Leader Tom DeLay argued that the FCC cannot unilaterally modify laws enacted by Congress and that any such change should originate from legislative action.
The vote is seen as a significant benefit for large TV station owners like Nexstar and Sinclair, potentially enabling them to pursue further acquisitions. This aligns with support they have received from Donald Trump. Conversely, figures such as Chris Ruddy, head of the conservative cable outlet Newsmax and a friend of Trump, have expressed strong opposition. Ruddy previously fought against the Nexstar-Tegna merger, a deal that would have made Nexstar the nation's largest broadcaster. Although the FCC's Media Bureau staff waived the 39 percent cap to approve that merger in March, the transaction is currently on hold pending an antitrust trial.
While many Republicans, including senior members of the House Energy and Commerce Committee, have cheered the deregulatory move, a segment of the party, including DeLay, has joined Democrats in questioning the FCC's authority and the implications for media diversity.