On Thursday, the Federal Communications Commission voted to remove the 39% national audience reach limit for television station ownership. The move, championed by Chairman Brendan Carr,aims to modernize regulations in the face of streaming competition but faces fierce opposition from Democratic Commissioner Anna Gomez.
Brendan Carr and the Repeal of the 39% Reach Limit
The Federal Communications Commission (FCC) recently voted to eliminate the 39% national audience reach cap, a rule that previously prevented any single entity from owning stations reaching more than 39% of American households. According to the report, FCC Chairman Brendan Carr argued that this change aligns the agency with current market realities, where traditional broadcasters compete with global streaming services and social media platforms.
The rule was originally established in 2004 when Congress raised the limit from 35%. The Republican majority on the commission maintains that removing this ceiling allows the agency to approve deals that promote the public interest on a case-by-case basis, rather than being bound by a rigid numerical threshold.
Anna Gomez and the Legal Challenge to FCC Authority
Democratic Commissioner Anna Gomez has formally dissented, claiming the decision is "unlawful on its face." As the report notes, Gomez argues that because Congress established the cap under federal law , the Federal Communications Commission lacks the unilateral authority to dismantle it without legislative approval.
Commissioner Anna Gomez highlighted the Nexstar-Tegna merger as a primary example of the risks associated with bypassing these limits. That specific deal was only possible through an unlawful waiver and was eventually blocked by a federal judge who found that DirecTV and various states had a strong case for antitrust violations. Gomez warns that trading the pressure of Big Tech for the pressure of Big Media does not protect local communities.
From 3,300 Lost Newspapers to Big Media Consolidation
This regulatory shift occurs during a period of aggressive media consolidation under the Trump administration. The Federal Communications Commission has already approved the merger of SkyDance and Paramount, which grants billionaire David Ellison control over CBS News. Furthermore, the purchase of Warner Bros. Discovery by David Ellison has been greenlit, though that transaction remains embroiled in litigation.
Commissioner Anna Gomez warned that this trajectory mirrors the collapse of the American newspaper industry. She pointed out that as newspaper consolidation grew from one-third to 70% of the industry, more than 3,300 local newspapers vanished, suggesting that consolidation often concentrates remaining assets rather than saving the industry itself.
Will Brendan Carr Use Licensing Power for Political Favoritism?
The removal of the 39% cap shifts the Federal Communications Commission to a case-by-case review process for ownership changes. This transition raises concerns about political influence, especially given that President Donald Trump has suggested that broadcast licenses could be revoked for stations that are unfriendly to his administration.
A critical remaining question is whether the Federal Communications Commission will maintain a neutral standard for "public interest" or if the agency will favor specific corporate allies. Because the report only presents the FCC's Republican majority view and Commissioner Gomez's dissent, it remains unclear how the agency intends to quantify "public interest" without the objective 39% benchmark.. Additionally, it is unknown which specific corporate entities will be the first to file for expansion under these new rules.
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