FCC Plans to Scrap Local TV Station Ownership Rules
The U.S. Federal Communications Commission is set to vote on August 6 to repeal the 39 percent rule limiting local TV network reach, replacing it with case-by-case approval. Critics warn of political influence and question the FCC's authority.
The Federal Communications Commission (FCC) announced plans to hold a vote that could dramatically shift the balance of power in the U.S. television market. On August 6, commissioners will ballot on repealing Section 303 of the Communications Act, along with the so-called 39 percent rule. This rule currently limits the audience reach of any local TV network to no more than 39 percent of the national market.
Under the proposed change, the FCC would switch to a system where it personally approves or rejects TV ownership deals on a case-by-case basis. Critics argue this could expose the process to partisan influence, especially given that FCC Commissioner Brendan Carr has previously threatened to revoke broadcast licenses for airing content critical of the government.
It remains unclear whether the FCC has the legal authority to repeal Section 303 without congressional consent. Lawrence J. Spiwak, writing in the Yale Journal on Regulation in January 2017, noted that Section 10 of the Communications Act explicitly forbids the FCC from altering the rules around Section 303. However, given the clear benefits of media consolidation, opposition from Congress is unlikely.
The issue gains relevance as talks resume between Sinclair Broadcast Group and The EW Scripps Company for a merger. A previous deal between Sinclair and Tribune was rejected in 2018; that deal would have given Sinclair, which is affiliated with the Republican Party, control over broadcast stations reaching more than 70 percent of U.S. households.
