Cable To Sue FCC Over Ownership Caps

Cable industry groups told the FCC they will sue to block the agency’s repeal of the National Television Ownership Rule, arguing the change will let large broadcast companies demand higher retransmission fees and raise consumers’ monthly TV bills.

The groups, which represent Comcast, Charter, and other cable operators, said in a filing that the repeal order “arbitrarily and capriciously ignores the harms that will surely follow from allowing broadcast station groups to exceed the National Cap.” They also asked the FCC to keep the limit in place until litigation over the agency’s authority ends.

The rule bars any single owner from reaching more than 39 percent of U.S. television households. Congress directed the FCC to set the cap at that level in 2004. The commission voted to eliminate it on August 6 and published the order on October 1, after an unusually long delay that may reflect efforts to strengthen legal arguments for repealing a statutory limit.

FCC Chairman Brendan Carr has said a case-by-case review of mergers would let the agency approve deals that serve the public interest and reject those that do not. Critics note that such reviews could also let Carr shape coverage, given his past threats to revoke licenses from broadcasters disfavored by President Trump.

Cable companies have grown through mergers as well. Charter completed its purchase of Cox in August after the FCC rejected advocacy groups’ claims that the deal would create “unchecked gatekeeper power” and make price increases easier.