WASHINGTON (dpa-AFX) - The Federal Communications Commission (FCC) will vote on August 6 to eliminate its long-standing national television ownership cap, a move that could allow broadcasters to significantly expand through mergers and acquisitions.
FCC Chair Brendan Carr said the current rule, which limits a single broadcaster from reaching more than 39 percent of U.S. television households, is outdated and prevents broadcasters from competing effectively with streaming platforms and technology companies.
Instead of a fixed ownership limit, Carr has proposed a case-by-case review process that would assess whether proposed deals serve the public interest.
The proposal is expected to pass, with the FCC's Republican majority supporting the measure. Carr said removing the cap would help local broadcasters attract investment, strengthen competition and sustain community-focused news programming.
The plan has drawn sharp criticism from Democrats and public interest groups. FCC Commissioner Anna Gomez argued that only Congress has the authority to eliminate the 39 percent ownership limit, which was established in federal law in 2004. She warned that the proposal could lead to greater media consolidation, weaker local news coverage and higher costs for consumers.
Broadcasters including Nexstar Media Group and Sinclair welcomed the proposal, saying existing ownership restrictions no longer reflect today's competitive media landscape, where traditional television companies compete with streaming services and digital platforms.
If approved, the change would make it easier for broadcasters to pursue large acquisitions, including deals that exceed the current ownership cap, provided the FCC determines they meet its public interest standard.
The proposal is expected to face legal challenges from opponents who argue the agency lacks the authority to remove the congressionally established limit.
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