The FCC is signaling it is about to get rid of a rule that prevented one company from having more than a 39% presence in the local tv market. The rule is being nixed, in part, to make way for a deal between Tegna and Nexstar that will give Nextar 80% presence in the local tv market.
The FCC Chair, Brendan Carr, said the rule will not be completely removed, but exceptions, such as the Nextar deal, will be allowed, when it is in the “public interest” to do so. The decision is sure to be challenged in court, where opponents assert only congress can make such changes, including adding exemptions.
US agency to vote to end 39% local TV station ownership cap – Reuters
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EXCERPT:
The chair of the Federal Communications Commission said Wednesday the agency will vote to rescind the 85-year-old rule that bars broadcasters from reaching more than 39% of the total number of U.S. TV households.
FCC Chair Brendan Carr confirmed Wednesday the agency will vote to lift the cap in favor of a new case-by-case approach. “Our new proposal would allow the FCC to approve deals that exceed the 39 percent cap, but only if doing so would promote the public interest,” Carr said in a essay published Wednesday.
Under current rules, stations with weaker over-the-air signals can be partially counted against a company’s ownership cap.
Critics say only Congress can lift the cap and argue it will lead to excessive concentration among station owners.
In March, the FCC approved the $3.54 billion sale of local television station owner Tegna to Nexstar (NXST.O), opens new tab despite objections from Democratic-led states.
The acquisition, if not reversed by courts, will expand Nexstar’s presence to cover 80% of U.S. TV households. The FCC said it was waiving the 39% rule in approving the deal.
