The US Federal Communications Commission plans to vote on August 6 to repeal the 39 percent audience reach cap for local TV station owners, a rule that has limited media consolidation for decades. If the measure passes, the FCC would instead approve or reject ownership deals on a case-by-case basis, a shift that critics warn could open the door to partisan influence.
The proposal targets Section 303 of the Communications Act, which currently bars any single TV network from reaching more than 39 percent of US households. FCC Commissioner Brendan Carr has previously threatened to revoke broadcast licenses for airing content critical of the government, raising concerns about the impartiality of the new case-by-case approach.
Legal questions and market implications
Legal experts question whether the FCC has the authority to unilaterally scrap the rule. Lawrence J. Spiwak, writing in the Yale Journal on Regulation, argued that Section 10 of the Communications Act explicitly prohibits the FCC from altering Section 303 without congressional approval. Despite this, lawmakers are unlikely to oppose the move given the potential benefits for media consolidation.
The vote comes as Sinclair Broadcast Group resumes talks to acquire The EW Scripps Company. A similar Sinclair deal with Tribune Media in 2018, which would have given the Republican-leaning broadcaster access to over 70 percent of US homes, was blocked by regulators. The new rule change could pave the way for such mega-mergers to proceed.