US agency ends 39% household cap on local TV station owners

On August 6, the U.S. Federal Communications Commission (FCC) decided to end the rule limiting local TV station owners to owning no more than 39% of U.S. TV households. The move, which could lead to industry consolidation, was approved 2-1 by the commission. The sole Democrat on the panel, Anna Gomez, argued that the proposal is illegal and only Congress can lift the cap.

FCC Chair Brendan Carr defended the decision, saying it will help local broadcasters survive and that the rule contributes to the decline of local newspapers. The FCC will now consider individual applications for TV company mergers that exceed 39% to determine if they are in the public interest, aiming to remove artificial restrictions and allow broadcast television to attract capital and generate revenue.

Critics argue the change will give more control of the public airwaves to a small number of companies, potentially favoring content that aligns with the current administration's preferences.