FCC moves to scrap local TV ownership caps amid Sinclair-Scripps talks
The US Federal Communications Commission plans to vote on August 6 to repeal the '39 percent rule', a move critics argue exceeds its legal authority and coincides with renewed acquisition discussions between major broadcasters.
The US Federal Communications Commission has announced plans to vote on August 6 to repeal Section 303 of the Communications Act, specifically targeting the '39 percent rule'. This provision currently restricts the reach of any single local TV network to a maximum of 39 percent of the national audience. If the vote proceeds, the statutory cap would be replaced by a system requiring the FCC to approve or reject ownership deals on a case-by-case basis.
The proposal has drawn immediate scrutiny regarding the regulator's legal standing. Critics point to Section 10 of the Communications Act, which Lawrence J. Spiwak noted in the Yale Journal on Regulation in January expressly forbids the FCC from altering the rules set out in Section 303 without legislative consent. It remains unclear whether the commission can bypass these restrictions without explicit approval from Congress.
The regulatory shift coincides with resumed negotiations between Sinclair Broadcast Group and The EW Scripps Company regarding a potential acquisition. Industry observers note that the move opens the door for significant media consolidation, echoing a rejected 2018 proposal between Sinclair and Tribune that would have allowed the broadcaster to control stations reaching more than 70 percent of US homes.
Concerns have also been raised about potential partisan influence in the new approval process. FCC Commissioner Brendan Carr has previously threatened to revoke broadcast licenses for stations airing material critical of the government, leading to fears that the case-by-case system could be used to suppress dissenting voices or reward compliant outlets.
While legal challenges loom, there is an assessment that officials in Congress are unlikely to oppose the FCC's proposal due to the perceived benefits of media consolidation for major players. The outcome of the August 6 vote will determine whether the US television market moves toward greater concentration of ownership under a discretionary regulatory framework.
