The US Federal Communications Commission voted Thursday to eliminate the national broadcast ownership rule, which barred a single company from reaching more than 39% of US television households. The 2-1 vote split along party lines: Republican chair Brendan Carr and commissioner Olivia Trusty voted yes; Democrat Anna Gomez voted no.
Carr said the rule will be replaced by a 'case-by-case review' process, arguing the decades-old cap 'hamstrung' local broadcasters competing against Big Tech platforms like YouTube, Instagram and Netflix. 'For too long, local broadcasters were handcuffed from reaching the scale they needed to compete,' said Nexstar, the country's largest station owner, which hailed the decision.
Critics immediately promised court challenges, arguing only Congress has the authority to change the rule. 'His goal is to spur more media consolidation involving companies Donald Trump views as ideological allies,' said Matt Wood, general counsel of public interest group Free Press, which vowed to sue. Sen. Elizabeth Warren called the vote 'the Trump administration's latest attempt to roll out the red carpet for more antitrust disasters.'
Gomez warned that 'eliminating the cap does not free local broadcasters from economic pressure, it just changes who is doing the squeezing.' While legal battles play out, analysts expect the change to accelerate a shift from local to national TV ownership.
