FCC Eliminates National Television Ownership Cap

The Federal Communications Commission voted 2 to 1 Thursday to eliminate the rule that generally prevented one television station group from reaching more than 39 percent of United States television households. The commission will instead review proposed transactions that exceed the former limit individually to determine whether they serve the public interest.

Baltimore based Sinclair, (owner of WJLA-TV in Washington and WBFF-TV in Baltimore), publicly pushed for looser national ownership restrictions. President and CEO Chris Ripley praised the FCC effort, calling the existing rules outdated and arguing that greater scale could help broadcasters compete and preserve local news. The decision is expected to encourage television station consolidation nationally. It could also produce deal activity in Washington and Baltimore.

Opponents moved quickly to challenge the decision in court. Free Press, a progressive consumer advocacy group, said it intends to file suit, with General Counsel Matt Wood calling the repeal “an unlawful power grab.” Gomez said the vote was “unlawful on its face,” adding that eliminating the cap “does not free local broadcasters from economic pressure, it just changes who is doing the squeezing.”