FCC Chair Brendan Carr moves to scrap 39 percent broadcast ownership cap

Federal Communications Commission Chair Brendan Carr has announced a vote for 6 August to remove the national broadcast ownership cap, a regulation that currently restricts a single company from owning stations reaching more than 39 percent of US television households. The proposal, detailed in a Breitbart op-ed on Wednesday, seeks to replace the statutory limit with a case-by-case review process for proposed mergers, arguing that the current rule hinders broadcasters from competing with digital platforms.

Carr contends that the 39 percent threshold is obsolete in the era of streaming and social media, noting that national programmers can reach 100 percent of the country without using public airwaves. He argues that capping local broadcast owners prevents them from gaining the same scale that digital competitors enjoy freely. The FCC has previously waived the ownership cap on a one-time basis to facilitate a $6.2 billion merger between Nexstar and Tegna, although a federal judge has placed the deal on hold pending a challenge by state attorneys general.

Nexstar Media Group has publicly supported the repeal of the cap, viewing the regulatory change as essential for its growth strategy. The proposed merger between Nexstar and Tegna would have allowed the combined entity to reach over half of US TV households under current rules, but integration was halted by a federal judge due to an antitrust case brought by DirecTV. Carr requires the support of Republican Commissioner Olivia Trusty to approve the agenda item for the vote.

Critics, including Democratic FCC Commissioner Anna Gomez and advocacy group Free Press, argue that the FCC lacks the authority to repeal a rule established by Congress. Gomez stated that the commission cannot waive away the limit simply because corporate entities wish to avoid it. Matt Wood, vice president of policy and general counsel at Free Press, countered that broadcasters already have the ability to create websites or cable news stations, asserting that the national cap is not a special disadvantage for the industry.

The move faces significant legal uncertainty, as opponents warn that removing the cap could harm local journalism and increase media consolidation. Even if the vote passes, the decision could face further challenges regarding the FCC’s jurisdiction. The outcome remains contingent on whether the commission can legally override a statutory limit set by Congress, a question that may ultimately rest with the courts.