Summary
The FCC voted 2-1 to remove the rule that stops one broadcaster from reaching more than 39% of U.S. TV households. This change lets local broadcasters merge and grow bigger to better compete with tech and streaming companies.Key Facts
- The rule lifted was a national TV ownership cap limiting a broadcaster’s reach to 39% of TV households.
- The vote was along party lines, with FCC Chairman Brendan Carr supporting the change and one dissenting commissioner.
- The FCC will review broadcast deals one by one to ensure they serve the public interest.
- Nexstar, a big broadcaster, could benefit most from the new rule as it tries to buy the competitor Tegna.
- A federal judge paused Nexstar’s purchase of Tegna due to an antitrust lawsuit filed by DirecTV and several states.
- DirecTV claims the deal would let Nexstar charge higher fees to pay-TV companies, increasing costs for consumers.
- Some groups argue the FCC does not have the legal power to remove the ownership cap.
- Media advocacy groups like Free Press plan to legally challenge the FCC’s decision.
