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FCC Eliminates TV Ownership Cap

Ars Technica •
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The Federal Communications Commission (FCC) voted 2-1 to eliminate the National Television Ownership Rule, which previously prohibited single owners from reaching more than 39 percent of U.S. TV households. FCC Chairman Brendan Carr stated the rule will be replaced with a case-by-case review, arguing it will help broadcasters compete with streaming services and encourage investment in local news.

This decision is controversial, as Congress set the 39 percent cap in 2004 and stipulated it could not be repealed or modified during quadrennial reviews. Media advocacy group Free Press plans to sue, with General Counsel Matt Wood asserting that only Congress can change the cap. Democratic FCC Commissioner Anna Gomez also voted against the repeal, agreeing that congressional action is necessary and warning that consolidation could harm local reporting.

Carr, however, contends that previous FCC chairs have asserted similar authority to modify the cap. The legal challenge will likely center on whether the FCC has the authority to repeal a limit set by Congress, especially following the Supreme Court's decision to overturn the Chevron deference precedent, which may give courts more power to interpret congressional intent.