Free Press Plans to Take Carr to Court in Response to Thursday's Unlawful Decision to Eliminate a Vital Limit on Media Consolidation
WASHINGTON — On Thursday, the Federal Communications Commission voted along party lines to eliminate the 39 percent national television-ownership cap, a statute that the agency lacks the legal authority to repeal. Free Press and allies plan to appeal this unlawful decision in court.
Congress enshrined the national ownership cap in federal law; it prohibits a single company from owning TV stations that reach more than 39 percent of the national broadcast audience. The FCC does not have the power to get rid of this limit, but Chairman Brendan Carr decided to move ahead. His motivation is to remove a significant legal hurdle to further broadcast consolidation — specifically involving media conglomerates that are friendly to President Donald Trump and his far-right agenda.
In March, the FCC unlawfully granted a waiver of this same rule for broadcast giant Nexstar Media Group’s $6.2 billion purchase of Tegna, allowing it to far exceed the national limit on station ownership. That merger would give Nexstar access to 80 percent of U.S. households over the nation’s broadcast airwaves. Although the companies rushed to close the transaction on the basis of the FCC’s unauthorized waiver, federal courts in California halted the transaction in light of the antitrust lawsuits both from state attorneys general and private parties.
Free Press has argued, alongside allies in press-freedom, labor, civil-liberties and consumer groups, that eliminating the cap would reduce competition, diminish viewpoint diversity, weaken local news and benefit only the nation’s largest station owners.
Free Press Vice President of Policy and General Counsel Matt Wood said:
“After his legally dubious maneuvers to waive the national cap for Nexstar’s takeover of Tegna, Carr is doubling down, seeking to overturn a vital media-ownership limit he has no actual authority to eliminate. His goal is to spur more media consolidation involving companies Donald Trump views as ideological allies and corporate cronies.
“Changing this limit requires congressional action, but Carr doesn’t care. He’ll do whatever it takes to clear the way for Trump-aligned billionaires to swallow up stations wherever and whenever they please. The result would be just one or two dominant broadcasters in every market, deep job cuts for journalists, and an influx of bargain-basement content disguised as local news. This spells disaster for the local communities that broadcasters are supposed to serve.
“Free Press and allies sued the Carr FCC for the unlawful procedural tricks it used to waive this ownership limit in the Nexstar-Tegna merger, and we intend to take the agency to court over today’s unlawful power grab too.”