FCC Chairman Proposes Repeal Of National Ownership Cap

Key Points:

• FCC Chairman Brendan Carr has proposed repealing the national ownership cap that limits broadcasters from covering more than 39% of U.S. TV households, replacing it with a case-by-case review to approve deals promoting the public interest; a vote is scheduled for August 6.
• The proposal aims to allow local broadcasters to compete more effectively with national programmers, but it faces criticism and legal challenges, including from Commissioner Anna Gomez and Newsmax CEO Chris Ruddy, who argue only Congress can lift the cap.
• Nexstar, which seeks to acquire Tegna in a deal exceeding the cap, supports the repeal as necessary to compete with tech giants and streaming services, while opponents warn it could lead to increased media consolidation and higher consumer prices.
• The repeal effort is backed by the National Association of Broadcasters as a modernization of outdated regulations, but legal experts question the FCC's authority to unilaterally remove the cap, especially following recent Supreme Court rulings limiting agency power.
• The future impact of the repeal will depend heavily on the composition and priorities of the FCC commissioners, with potential for varied treatment of local station groups versus national network-owned stations under the proposed case-by-case review.