The Federal Communications Commission has voted to repeal its 39 percent national television ownership cap, replacing the longstanding rule with a case-by-case review of broadcast consolidation deals.
The FCC said the change reflects the transformation of the video marketplace, where streaming platforms now reach more than 80 percent of U.S. adults and face no comparable national ownership restrictions. According to the Commission, eliminating the cap will allow broadcasters to compete more effectively with digital platforms for investment and advertising revenue.
Under the previous rule, transactions that would result in a broadcaster reaching more than 39 percent of U.S. television households were generally prohibited. The new approach will allow the FCC to determine whether individual transactions serve the public interest, taking into account competition, localism and viewpoint diversity.
The Commission said deals that do not meet the public-interest standard will still be rejected, while transactions that exceed the former 39 percent threshold could be approved if they are deemed beneficial to the public.
The FCC said the action marks the first time in more than 20 years that it has modified the national ownership rule and reaffirmed its authority to repeal the cap.
Critics said that repealing the cap could accelerate consolidation of the local television industry, giving a handful of large station groups much greater control over the country’s broadcast TV audience.
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