FCC lifts the cap limiting the size of TV broadcasting companies

The Federal Communications Commission on Thursday voted to eliminate a long-standing regulation constraining the size of large television broadcasting companies, a major deregulatory move pushed by FCC Chairman Brendan Carr.

The FCC’s commissioners voted 2-1 to replace the cap, which prevents a company from owning broadcasting stations that collectively reach more than 39% of U.S. households, with a case-by-case review. The agency has said that the new process would “empower the FCC to approve deals that promote the public interest while allowing the agency to reject any deals that do not meet that standard.”

Carr already sidestepped the ownership cap earlier this year when the FCC approved Nexstar’s $6.2 billion merger with rival Tegna, which would give the country’s largest TV owner an 80% reach into American homes. That deal was subsequently blocked by a federal judge after DirecTV and several state attorneys general sued, alleging antitrust violations. The case is ongoing.

In a July op-ed on the right-wing website Breitbart, Carr lamented that “New York and Hollywood interests” have become too powerful and have “steamrolled” local TV station owners. He added that the commission needs to remove the ownership cap so broadcasters can better compete with cable TV companies and large tech platforms.

“The cap no longer constrains the power of national programmers,” he wrote. “Instead, it prevents local broadcasters from competing on a level playing field.”

Anna M. Gomez, the lone Democratic FCC commissioner, said during the Thursday meeting that Congress has the authority to lift the ownership cap. She added that the change won’t solve competition problems for local stations.

“Eliminating the cap does not free local broadcasters from economic pressure, it just changes who is doing the squeezing,” she said. “Trading a squeeze from Big Tech for a squeeze from Big Media does nothing to protect the communities this cap was designed to serve.”

Former House majority leader Tom DeLay (R-Texas), who helped institute the 39 percent cap in 2004, made a similar point in a Monday op-ed for the conservative website the Daily Wire, writing that it’s up to Congress to change it – and not the FCC.

“I am a Republican. I support deregulation and the Trump administration. But my ultimate loyalty rests with the Constitution, which gives certain prerogatives to Congress,” Delay wrote. “Regulatory agencies cannot defy or modify laws enacted by Congress. If Chairman Carr wants to raise the statutory cap, he should ask Congress to pass a law giving him authority to do that.”

Since taking the helm of the FCC at the outset of President Donald Trump’s second term, Carr has initiated a bevy of investigations into media companies. His actions have garnered some criticism from fellow Republicans concerned about the government pressuring private companies over issues of speech. When Carr threatened Disney-owned ABC stations’ licenses in September over comments made by late-night host Jimmy Kimmel in the aftermath of conservative activist Charlie Kirk’s murder, Sen. Ted Cruz (R-Texas) called Carr’s comments “dangerous as hell.”

That long-simmering fight between Carr and Disney has boiled over in recent weeks. Disney has alleged that the FCC’s early review of its eight ABC station licenses, probe of “The View” and review of Disney’s diversity practices violate the media company’s free press protections under the First Amendment.

The Republican discomfort with Carr, meanwhile, hasn’t abated. During a Senate Judiciary hearing on Wednesday, Sen. John Kennedy (R-Louisiana) expressed frustration about the commission’s actions. “Sometimes the FCC scares me right now,” he told FCC general counsel Adam Candeub. “I don’t like some of the stuff that is said on television, but what business is it of the FCC?”

“All I’m saying is, y’all be careful,” Kennedy added. “You’re getting into the foothills of violating the First Amendment.”

The nonprofit Free Press said Thursday that it plans to sue the FCC and challenge its authority to remove the cap.

“Changing this limit requires congressional action, but Carr doesn’t care,” Matt Wood, the group’s vice president of policy and general counsel, said in a statement. “He’ll do whatever it takes to clear the way for Trump-aligned billionaires to swallow up stations wherever and whenever they please.”

Scott Nover reports for The Washington Post.