Federal Communications Commission scraps limit on broadcast TV ownership

The Federal Communications Commission voted 2-1 to eliminate the 39% cap on broadcast TV station ownership, replacing the 22-year-old rule with a case-by-case review. FCC Chairman Brendan Carr, who pushed for the change, argued that the cap was outdated and prevented local broadcasters from achieving the scale needed to compete with national programmers and streaming platforms.

The 39% cap had been in place since 2004, when Congress raised it from 35% set in the 1990s. Carr maintains the FCC has statutory authority to scrap the rule, a position likely to face legal challenges; progressive group Free Press announced plans to sue over the 'unlawful power grab.' Democratic Commissioner Anna M. Gomez called the vote 'unlawful on its face,' arguing the change will not free local broadcasters but instead allow large national companies to squeeze them further.

The decision is a win for Nexstar Media Group, the largest U.S. owner of local TV stations, which is seeking to acquire rival Tegna in a $6.2 billion deal. A federal judge has put that transaction on hold after eight state attorneys general filed an antitrust lawsuit, and the combined entity would reach at least 60% of U.S. households. Carr had already exempted the Nexstar-Tegna deal from the 39% rule in March, and the FCC's broader repeal removes a key obstacle to further consolidation.