Carr Calls for Ending Cap on TV Station Ownership

The nation's longstanding rule on TV ownership is on the verge of extinction. The Federal Communications Commission plans an Aug. 6 vote on scrapping the cap that bars any one company from owning stations reaching more than 39% of US TV households, replacing it with case-by-case reviews of deals. FCC Chair Brendan Carr argues the limit is obsolete in a world where streamers, cable channels, and social platforms can already reach all Americans, saying the cap doesn't restrain national programmers' power or reflect today's media market. Carr made the announcement in an op-ed published by Brietbart, Variety reports.

The move could immediately affect stalled mega-deals like Nexstar's planned takeover of Tegna and is already triggering a fight over who controls local airwaves. Nexstar and the National Association of Broadcasters back the change as a long-overdue update that lets local stations better compete with tech giants. Democratic FCC Commissioner Anna Gomez called the effort illegal and a giveaway to billionaires that "will destroy local newsrooms." She argued that only Congress can alter the cap. DIRECTV warned that more consolidation will raise consumer prices without improving local journalism. The FCC maintains that ending the cap won't guarantee approval of future mergers. Carr's case-by-case system would mean the FCC would largely be picking winners and losers, the Los Angeles Times points out.