FCC to Vote on Replacing National Broadcast Ownership Cap

Chairman Brendan Carr published an op-ed in Breitbart announcing that the Federal Communications Commission will vote on August 6 on an Order that repeals the FCC’s 39 percent national television multiple ownership rule. Specifically, the FCC would modify the FCC rule for the first time in over 20 years. 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 has presumed that it would not be in the public interest to allow a particular deal in excess of this bright line limit. Shifting from a relatively inflexible, ex ante regulation to an individualized, case-by-case assessment will help ensure that the Commission carries out its statutory mandates in an appropriate manner without having to show special circumstances that would justify a waiver of a rule that no longer serves the public interest. Strict ownership limits on local broadcasters that prevent them from competing with other players in the modern marketplace are not in the public interest. While competitors are free to reach 100% of their relevant market segments, this FCC rule has generally limited broadcasters to competing for just 39% of theirs.