Brendan Carr Moves Forward with Broadcast Consolidation
The era of strict broadcast ownership limits has come to an end, as the Federal Communications Commission (FCC) voted to abolish the national ownership cap rule. The decision saw support from the agency’s two Republican members, Chair Brendan Carr and Commissioner Olivia Trusty, while Democratic Commissioner Anna Gomez opposed the move. This change formalizes a policy that Carr has long criticized, which he announced he would pursue at the recent FCC meeting. Instead of a fixed limit, the FCC will now conduct “granular, case-by-case reviews” to assess whether broadcast consolidation serves the public interest. This approach allows the agency to avoid needing to demonstrate special circumstances for waiving a rule deemed outdated.
Carr has frequently argued that the ownership cap is an artificial barrier that hinders broadcast owners from competing with social media and streaming platforms that can reach the entire country without needing broadcast licenses. This shift occurs amid ongoing tensions between Carr and President Trump, who have both expressed dissatisfaction with broadcasters over perceived unfair coverage. For instance, the FCC sought early renewal of ABC’s broadcast licenses shortly after Trump criticized the network for a joke made by late-night host Jimmy Kimmel. The agency linked this decision to an investigation into the company’s diversity, equity, and inclusivity (DEI) policies.
Opponents of the ownership cap repeal, including Gomez, argue that allowing broadcast owners to acquire as many stations as they wish could undermine local news reporting and increase costs for consumers. They contend that only Congress has the authority to lift the ownership cap, as it was established by a 2004 law, leaving it vulnerable to legal challenges.
Despite the repeal, the FCC under Carr has already found ways to circumvent the rule prior to its official removal. For example, Carr approved a waiver of the cap to facilitate the $6.2 billion merger between broadcasters Nexstar and Tegna, although a federal judge has since paused the merger due to a challenge from a group of state attorneys general.