The Federal Communications Commission voted Thursday to eliminate the 39% national ownership cap for television stations. This change removes a two-decade-old rule that limited how many households a single company could reach via broadcast television. The agency will now shift to a case-by-case review process for future station acquisitions.
FCC Chairman Brendan Carr championed the repeal, arguing the previous policy was outdated and prevented local broadcasters from competing with modern streaming services and digital platforms. Under the new policy, companies can expand their broadcast reach beyond the former percentage limit provided they meet regulatory approval for each individual deal.
Commissioner Anna M. Gomez, the sole dissenting vote, argued the move lacks legal authority and invites excessive corporate consolidation. She noted that large station groups, rather than small local operators, are best positioned to benefit from this expansion. Opponents suggest the change will lead to significant layoffs, a decrease in ownership diversity, and restricted programming variety.
This decision marks a major shift for large industry players like Nexstar Media Group. Nexstar has long sought to acquire rival Tegna, a deal that would expand its reach significantly beyond the previous threshold. While the transaction currently faces legal challenges in court from state attorneys general, the FCC’s decision provides a regulatory path forward for such large-scale mergers.
Legal experts and consumer advocacy groups have questioned whether the FCC possesses the authority to unilaterally change a rule codified by Congress. Further litigation is expected as parties challenge the agency’s ability to bypass federal statute.