FCC Chairman Proposes Repeal Of National Ownership Cap
FCC Chairman Brendan Carr is proposing a repeal of the national ownership cap, which restricts broadcasters from amassing stations that cover more than 39% of TV households.
He set a vote of August 6 on the proposal. Republicans hold a 2-1 majority on the commission.
Carr is proposing that the cap be replaced with a case-by-case review, in what he said would be fore deals that “promote the public interest.”
In an op ed on Brietbart.com, Carr wrote, “Today, the cap is not protecting local broadcasters, it is preventing them from gaining the same scale that their competitors are free to enjoy. In other words, the national cap is now doing the exact opposite of what the FCC intended.”
A case-by-case review raises the prospect that local station groups would be treated differently than broadcast network owned and operated stations, as Carr has been critical of the influence of national programmers.
He wrote, “When it comes to broadcast news, our country could do with a little less Hollywood and a little more local reporting from communities across the country. The FCC’s plan to switch from a national cap to a case-by-case review allows exactly that and shifts the focus back to the American people and the local communities they live in.”
Nexstar‘s proposed acquisition of Tegna exceeds the ownership cap, but it received a waiver from the FCC’s media bureau in March to allow the transaction to go through. But the merger has been on hold, with a federal judge granting an injunction to state attorneys general and DirecTV in their challenge to the transaction. Netflix is appealing.
The FCC’s action is also likely to be challenged, with opponents, including Commissioner Anna Gomez, arguing that only Congress could lift the cap.
The repeal of the cap has been a long goal of the National Association of Broadcasters. Its CEO, Curtis LeGeyt, said in a statement, “This reflects the understanding that decades-old ownership restrictions that apply only to broadcasters – and none of our competitors – are out of step with today’s media marketplace. Eliminating the broadcast ownership cap will empower local stations, ensuring they can better compete, invest and serve their communities with the most trusted and freely available news and information, premier sports and entertainment.”
More to come.
