FCC Repeals Nationwide Television Audience Ownership Cap

The Federal Communications Commission voted along party lines on Thursday to repeal the nationwide audience cap that limited a single broadcaster to reaching 39% of U.S. television households. Chairman Brendan Carr led the effort to replace the fixed limit with a case-by-case review process, arguing the shift is necessary for broadcasters to compete with large technology firms and preserve local news operations.

Democratic Commissioner Anna Gomez dissented, stating that only Congress possesses the authority to change the cap. The deregulation is a critical component for Nexstar Media Group Inc. as it acquires Tegna Inc. The combined entity would reach approximately 80% of U.S. households, a figure that would have been prohibited under the previous rule.

Although the Nexstar-Tegna deal has closed, it remains subject to antitrust challenges from DirecTV Inc. and a bipartisan group of state attorneys general. A trial regarding these challenges is scheduled for next summer. Other opposition to the FCC's rule change includes Newsmax Inc., various labor organizations, and public-interest groups.