US agency ends 39% local TV station ownership cap

On August 6, the U.S. Federal Communications Commission (FCC) voted to end a 39% ownership cap for local TV stations, potentially leading to increased industry consolidation. The decision, taken with a 2-1 vote, applies a case-by-case approach for evaluating TV company mergers that surpass the cap. FCC Chair Brendan Carr defended the move, stating it would help local broadcasters survive and reduce their reliance on outdated restrictions, particularly as local newspapers decline sharply.

The cap, in place since 1941, was last raised to 39% in 2004. Critics argue the deregulation could result in excessive market power among station owners, granting more control of public airwaves to a small number of companies, potentially favoring the administration's preferred content. The FCC will review individual applications for TV company mergers that exceed the 39% threshold to assess their public interest.

Senator Ted Cruz from Texas questioned the FCC's ability to increase the cap without an act of Congress, while Senator Elizabeth Warren from Massachusetts expressed concerns about the move allowing billionaires to profit at the expense of consumers.