US agency to vote to end 39% local TV station ownership cap

By David Shepardson

WASHINGTON, July 15 (Reuters) – 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 ⁠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.

A judge has halted the deal pending a court challenge.

In February, President Donald Trump said he supported the deal. Trump has repeatedly pressured Carr to revoke ⁠the licenses of Comcast-owned NBC and ABC stations and Carr ordered an unusual early license review of Disney’s eight company-owned ABC stations.

Critics have ⁠said Carr is ‌violating the free speech rights of broadcasters.

FCC Commissioner ⁠Anna Gomez, a Democrat, said the “cap reflects ​Congress’ judgment ‌that excessive concentration threatens competition, localism, and ​viewpoint diversity. ⁠It is not a suggestion. It is the law.”

The National Association of Broadcasters praised Carr’s action saying it “reflects the understanding that decades-old ownership restrictions that apply only to broadcasters – and none of our competitors – are out of step with today’s media marketplace. ”

(Reporting by David Shepardson; Editing ​by Chizu Nomiyama )