Key facts
- The FCC voted 2-1 to rescind the 39% cap on local TV station ownership.
- The rule, in place since 1941 and last updated in 2004, limited owners to reaching 39% of U.S. TV households.
- FCC Chair Brendan Carr argued the change will aid broadcasters by removing outdated restrictions.
- Commissioner Anna Gomez dissented, stating the FCC lacks the authority to lift the cap.
- The FCC had previously waived the rule for Nexstar's acquisition of Tegna, a deal now pending a court challenge.
The Federal Communications Commission (FCC) voted 2-1 to rescind a long-standing rule that prevents local broadcast station owners from reaching more than 39% of the total number of U.S. television households. This decision is expected to encourage further consolidation within the broadcast industry.
FCC Chair Brendan Carr confirmed the agency's intention to vote on lifting the cap, favoring a new case-by-case approach. Under the current rules, stations with weaker over-the-air signals are partially counted against a company's ownership cap. These ownership limits have been in place since 1941, with the cap most recently being raised to 39% in 2004.
However, FCC Commissioner Anna Gomez, the commission's sole Democrat, dissented, arguing that the proposal is illegal and that only Congress has the authority to lift such a cap. She stated that the cap reflects Congress's judgment that excessive concentration threatens competition, localism, and viewpoint diversity.
In a related development, the FCC had previously approved the $3.54 billion sale of local television station owner Tegna to Nexstar, waiving the 39% rule. This acquisition, if finalized, would expand Nexstar's reach to cover 80% of U.S. TV households. However, a judge has placed a hold on the deal pending a court challenge.