The Federal Communications Commission voted 2-1 on Thursday to remove the national TV ownership cap. This regulation previously prohibited any single broadcaster from owning stations that reached more than 39 percent of U.S. households. With this cap gone, local broadcast groups are now free to merge and expand their reach significantly.
FCC Chairman Brendan Carr supported the change, stating that the old cap was outdated and hindered broadcasters from competing with large tech firms and streaming services. The agency noted that future mergers will undergo a case-by-case review to ensure they meet public interest standards. This decision marks a major shift in how the commission manages media consolidation.
Industry groups like Nexstar welcomed the move, arguing that broadcasters have been restricted from reaching the necessary scale to survive in the current market. By removing these handcuffs, the industry expects more investment in local journalism and news infrastructure. However, the path forward remains complicated for existing deals currently held up by legal proceedings.
For example, the multibillion-dollar Nexstar-Tegna merger remains stalled due to a separate antitrust lawsuit brought by DirecTV and several state attorneys general. While this FCC vote alters the regulatory framework, it does not stop that ongoing litigation. Consumer advocates, including the group Free Press, have already signaled their intent to challenge the FCC decision in court, citing concerns about market concentration and potential price increases for consumers.
Commissioner Anna Gomez, the sole dissenting vote, argued that the FCC exceeded its authority. She stated that Congress solidified the ownership limit in 2004, effectively removing the commission's power to adjust the cap on its own. The transition from the previous administration's stance to this current policy reflects a sharp pivot in media oversight that will likely face prolonged scrutiny in the federal court system.