The FCC voted 2-1 on Thursday to eliminate the longstanding 39% national ownership cap on broadcast television stations, replacing the bright-line limit with a case-by-case public interest review of any deals that would exceed it.
The party-line decision, with Democratic Commissioner Anna Gomez dissenting, marks the first modification of the rule in roughly two decades and grants the agency greater flexibility to approve or reject transactions based on whether they serve the public interest.
Republican Chairman Brendan Carr and Commissioner Olivia Trusty supported the change. Broadcasters who have long lobbied against the caps welcomed the outcome. National Association of Broadcasters President and CEO Curtis LeGeyt called it “a generational step toward strengthening local stations and ensuring they can compete in today’s media marketplace.”
Opponents, however, vowed legal action. Public interest group Free Press announced plans to sue shortly after the vote, describing the order as an “unlawful power grab” and arguing that only Congress has authority to alter the ownership limits established in a 2004 law. Legal challenges are widely expected to follow.
He described the old 39% cap as a “blunt instrument” that the new case-by-case approach would replace with more nuanced analysis focused on localism and economic sustainability.
While the vote applies only to television, industry observers see it as a potential signal for radio. No formal proceeding is underway to lift local radio ownership limits, but radio groups have intensified lobbying efforts as part of the FCC’s ongoing quadrennial media ownership review.