The Federal Communications Commission voted Thursday to rescind a rule that has for decades limited local broadcast station owners from reaching more than 39% of the total number of U.S. television households. The decision, approved in a 2-1 vote, could lead to increased consolidation within the broadcast industry.
FCC Chair Brendan Carr stated the change aims to support local broadcasters facing economic challenges, drawing a parallel to the decline of local newspapers. "We should stop hamstringing this one segment of the broader market with outdated restrictions," Carr said.
The commission's sole Democrat, Anna Gomez, dissented, arguing that the proposal is illegal and that only Congress has the authority to lift such a cap. Critics of the decision express concerns that it could grant excessive market power to station owners.
The 39% cap was most recently established in 2004, having been in place since 1941 in various forms. The rule has previously allowed for stations with weaker over-the-air signals to be partially counted against a company's ownership limit.
In March, the FCC approved the $3.54 billion sale of local television station owner Tegna to Nexstar. This approval was granted despite objections from some Democratic-led states and included a waiver of the 39% rule. If the sale is not reversed by courts, Nexstar's reach would extend to approximately 80% of U.S. TV households.