FCC Replaces National Broadcast Ownership Cap

The Federal Communications Commission voted to repeal its 39 percent national television multiple ownership rule and replace it with a granular, case-by-case review. This will empower the FCC to approve deals that promote the public interest while allowing the agency to reject any deals that do not meet that standard. Through this action, the FCC exercises its authority to modify the ownership rule for the first time in over 20 years and align it with current market realities. In its current formulation, the national cap generally has operated as a blanket prohibition on transactions that would result in the merged entity achieving a national audience reach greater than 39 percent of television households. As applied, the rule generally presumed that it would not be in the public interest to allow a particular deal in excess of 39 percent. Shifting from a relatively inflexible, ex ante regulation to a case-by-case assessment will help ensure that the FCC carries out its statutory mandates without having to show special circumstances that would justify a waiver of a rule that no longer serves the public interest.