Key facts
- The FCC voted 2-1 to eliminate the National Television Ownership Rule.
- The rule previously limited broadcasters to reaching no more than 39 percent of US TV households.
- FCC Chairman Brendan Carr asserted the agency's authority to repeal the rule, replacing it with case-by-case merger reviews.
- Critics, including Democratic Commissioner Anna Gomez and media advocacy group Free Press, argue only Congress can alter the cap.
- Free Press intends to sue the FCC to block the change, citing congressional intent and potential consolidation of media ownership.
The Federal Communications Commission has voted to eliminate the National Television Ownership Rule, a regulation that has limited any single broadcast station owner from reaching more than 39 percent of all U.S. television households for over two decades. The decision, which passed with a 2-1 vote under Chairman Brendan Carr, replaces the fixed cap with a "case-by-case review" for proposed mergers.
Carr's office stated that the repeal will empower the FCC to approve deals promoting the public interest and allow broadcasters to better compete against streaming services. He argued that increased scale will enable stations to attract necessary capital and advertising revenue to sustain local news and programming, countering the "leverage of national programmers."
However, the FCC's authority to make this change is contested. Congress set the 39 percent cap in 2004, overriding a previous FCC decision, and included language that critics argue prevents the FCC from repealing or modifying it outside of quadrennial reviews. Democratic Commissioner Anna Gomez, who voted against the repeal, stated that only Congress has the power to alter the cap, a view echoed by former FCC officials and lawmakers involved in the original compromise.
Media advocacy group Free Press has announced its intention to sue the FCC to block the rule change, with General Counsel Matt Wood asserting that "changing this limit requires congressional action." Free Press warns that the repeal could lead to media consolidation, job cuts for journalists, and a decrease in local news quality.
Carr's legal argument relies on past court interpretations that suggested Congress's initial percentage determination was a "starting point" for FCC assessment. However, a 2002 DC Circuit ruling cited by Carr predates the 2004 law that imposed stricter limits on FCC modifications. Furthermore, the Supreme Court's recent overturning of the Chevron precedent may limit the FCC's ability to interpret ambiguous statutes, potentially giving courts more power to scrutinize the agency's actions.
This move by Carr marks the first time an FCC chairman has sought to entirely eliminate the ownership cap. Previous chairmen, both Democratic and Republican, have asserted authority to modify the cap, often by adjusting exceptions like the one for UHF stations, but none have attempted a complete repeal. Carr maintains his legal argument is supported by a consistent line of FCC chairs over the past dozen years.