Newsmax CEO Threatens To Sue The FCC

Newsmax CEO Christopher Ruddy has threatened to sue the FCC if it raises or eliminates the national television broadcast ownership cap to allow major mergers like the proposed Nexstar-Tegna deal.

The 39% cap , a long-standing rule set by Congress that limits any single company from owning TV stations reaching more than 39% of U.S. households, is at the center of the dispute. Ruddy, testifying before the Senate Commerce Committee last week, called any FCC attempt to bypass or change this limit a "blatant violation of congressional law." 

He stated he is "prepared to litigate the matter," arguing it would enable massive consolidation, reduce competition, threaten viewpoint diversity, and allow a few corporations to dominate local news.The threat stems from ongoing FCC considerations under Trump-appointed Chair Brendan Carr, amid pressure for the $6.2 billion Nexstar-Tegna merger, which would exceed the cap and create the largest U.S. TV station group. 

Chris Ruddy

President Trump has publicly backed the deal on social media, citing the need for more competition against "fake news" national networks like those owned by Comcast and Disney. However, bipartisan Senate voices, including Commerce Committee members, have emphasized that only Congress can alter the statutory cap.

Ruddy, a longtime Trump ally and Newsmax founder, has framed the potential change as harmful to conservative media and independent voices, warning it could lead to fewer diverse outlets and greater control by big players. Over 40 GOP House members have also urged the FCC to preserve the cap, rejecting waivers or mergers that violate it.

The debate highlights tensions in media policy, pitting calls to modernize "outdated" rules against concerns over consolidation in an era of streaming dominance. No lawsuit has been filed yet, but Ruddy's public readiness signals potential legal challenges if the FCC moves forward.