FCC scraps cap on broadcast TV ownership despite worries it will spark media consolidation

FCC scraps cap on broadcast TV ownership despite worries it will spark media consolidation The contentious vote and strong opposition underscore deep divisions over the future of local media ownership - Bookmark - CommentsGo to comments The FCC has voted to rescind a long-standing rule that barred local broadcast station owners from reaching more than 39% of American television households, a move poised to spark significant industry consolidation. The contentious 2-1 decision saw the commission's sole Democrat, Anna Gomez, argue the proposal was illegal and that only Congress could lift the cap. Critics widely contend this deregulation will lead to excessive market power among station owners. FCC Chair Brendan Carr defended the decision, stating it would help local broadcasters survive in a challenging media landscape, likening the situation to the decline of local newspapers. "We should stop hamstringing this one segment of the broader market with outdated restrictions," Carr said. He added, "I don’t want local broadcast TV to go the way of local newspapers." Carr also argued the change would empower local TV station owners to boost investment in local programming and gain leverage against national networks. The FCC's new rule will evaluate applications for TV company mergers exceeding 39% on an individual basis, aiming to "remove artificial restrictions on opportunities for broadcast television to attract capital and generate revenue." Gomez, however, countered the decision is "an invitation to bring in a lot of transactions," arguing it hands "more control of the public airwaves to a small number of companies whose coverage pleases this administration." She added, "It is putting its thumb on the scale in favor of content that this administration likes." The implications of this shift are already evident. In March, the FCC approved the $3.54 billion sale of local TV station owner Tegna to Nexstar, despite objections from Democratic-led states. If upheld, this acquisition will expand Nexstar's reach to cover 80% of U.S. TV households, with the FCC explicitly waiving the 39% rule. The move has also drawn scrutiny from Capitol Hill, with Republican Senator Ted Cruz skeptical the FCC can hike the cap without congressional action. Democratic Senator Elizabeth Warren further criticized the decision, accusing Carr of "trying to illegally rewrite the rules to make it easier for billionaires to line their own pockets while jacking up costs and controlling what Americans watch." The contentious vote and strong opposition underscore deep divisions over the future of local media ownership and its potential impact on public access to diverse information. Join our commenting forum Join thought-provoking conversations, follow other Independent readers and see their replies Comments