Cable Lobby To Sue Trump FCC Over Repeal of National TV Ownership Cap

Cable lobby groups, representing major providers such as Comcast and Charter, have announced their intention to sue the Federal Communications Commission (FCC) to halt its recent repeal of the National Television Ownership Cap. The cap, set at 39 percent in 2004, limits the number of broadcast TV stations a single company can own. The cable lobby groups claim that allowing broadcast station groups to exceed this cap will lead to higher retransmission fees for consumers, resulting in increased monthly TV bills.

The cable lobby groups argue that the FCC's decision arbitrarily ignores the potential harm caused by exceeding the National Cap. They maintain that the 2004 law established the 39 percent cap as a precise numerical threshold, making Congress' intent clear. The petition to the FCC is primarily a procedural step, as the commission is unlikely to stay its own order.

The cable groups intend to sue the commission in a US appeals court following the FCC order's publication in the Federal Register, to seek a preliminary injunction to maintain the TV ownership cap pending the outcome of litigation.

The cable lobby groups argue that the FCC cannot change the cap because the 2004 law refers to the 39 percent cap as statutory, not regulatory. The petition also highlights a provision requiring divestiture of stations that exceed the 39 percent national audience reach limitation within two years, as outlined in section 202(c) of the Telecommunications Act of 1996.

The FCC's order argued that its ability to forbear from enforcement of its rules is distinct from its power to alter or eliminate those rules, and that the FCC's forbearance authority does not apply to regulation of broadcasters.