The Federal Communications Commission voted Thursday to eliminate a longstanding cap on how much of the U.S. television audience a single company can reach through broadcast television ownership. In a 2-1 decision along party lines, the FCC repealed a 22-year-old rule that prohibited any entity from owning stations reaching more than 39% of American TV households. The rule, which had been in place since 2004, will be replaced with a case-by-case review approach for future ownership deals. FCC Chairman Brendan Carr, a Republican appointed during President Donald Trump’s second term, supported the repeal, calling the limit an “outdated” policy that hinders local broadcasters from competing with larger media entities. He argued the rule no longer serves its original purpose in a media landscape transformed by streaming services and digital platforms. Carr was joined in the vote by fellow Republican commissioner Olivia Trusty, also appointed by Trump. The lone Democratic commissioner, Anna M. Gomez, opposed the move, labeling it “unlawful on its face” and warning that removing the cap would not relieve economic pressures on local broadcasters but instead shift control to larger national companies that own local stations. Gomez warned the change could lead to increased consolidation and reduced viewpoint diversity. The decision provides a regulatory advantage to Nexstar Media Group, the largest owner of local television stations in the U.S., which is pursuing a $6.2 billion acquisition of rival broadcaster Tegna. That deal, if completed, would give the combined company reach of at least 60% of U.S. television households. A federal judge has currently blocked the merger after eight state attorneys general filed an antitrust lawsuit challenging it. Carr had previously exempted the Nexstar-Tegna transaction from the 39% cap on a standalone basis, stating it aligned with existing FCC authority. Supporters of the repeal, including Nexstar and other major station owners, argue the ownership limit is outdated, noting it was established before the rise of Netflix, smartphones, and social media platforms that face no similar restrictions. Critics, including consumer advocacy group Free Press and Senator Elizabeth Warren, contend the move constitutes an unlawful overreach by the FCC, arguing that Chairman Carr cannot unilaterally erase a rule established by Congress. Free Press has announced plans to sue the FCC over the decision, calling it an illegal power grab that could accelerate media consolidation, lead to job losses, and reduce independent ownership in local television.
Key facts
- The FCC voted 2-1 to eliminate the 39% national audience reach cap on broadcast TV ownership.
- The rule had been in place since 2004, replacing an earlier 35% limit from the 1990s.
- FCC Chairman Brendan Carr supported the repeal, calling the cap outdated and harmful to local broadcasters’ competitiveness.
- Commissioner Anna M. Gomez, the sole Democrat on the FCC, opposed the vote, calling it unlawful and warning it would increase consolidation.
- The decision benefits Nexstar Media Group, which seeks to acquire Tegna in a $6.2 billion deal that would reach at least 60% of U.S. households.
- A federal judge has blocked the Nexstar-Tegna merger pending an antitrust lawsuit from eight state attorneys general.
- Critics including Free Press and Senator Elizabeth Warren argue the FCC lacks authority to repeal a rule set by Congress and plan legal action.