FCC ends 39% TV ownership cap in 2–1 vote

The Federal Communications Commission voted 2–1 to remove television ownership limit that had barred any single owner from reaching more than 39 percent of U.S. households.

Under the new approach, the agency said it will no longer apply a fixed nationwide ceiling. Instead, it will evaluate broadcast merger proposals individually through a case-by-case review process.

FCC shifts from a fixed ceiling to merger-by-merger scrutiny Officials said the policy shift is designed to help traditional broadcasters compete more effectively with streaming services. They also said the change is meant to encourage investment in local news production.

The decision is a major revision to how ownership scale is assessed in broadcast transactions, because the prior framework relied on a single national threshold rather than individualized judgments for each proposed deal.

Legal and jurisdiction questions center on Congress’s 2004 statute The move is expected to face substantial legal and jurisdictional challenges. The 39 percent cap was set by Congress in 2004, and critics argue that a limit written into law cannot be undone by agency vote.

Dissenting commissioners and other critics said the FCC lacks the statutory authority to repeal a restriction that the legislature codified. They point to the role of Congress in establishing the threshold and limiting the FCC’s discretion over it.

Legal experts noted that the 2004 statute also limited the FCC’s ability to change the cap through its quadrennial media rule reviews. In that reading, the law did not merely set the number; it also constrained the agency’s pathway to altering it.

Litigation expected to shape media consolidation and FCC autonomy Industry observers said lawsuits to stop the change are likely to be filed quickly. The practical effect of the FCC vote could therefore hinge on whether courts allow the agency’s new approach to take effect while challenges proceed.

At stake is the direction of media consolidation in U.S. broadcasting, because replacing a bright-line ownership ceiling with case-by-case review could change how large transactions are evaluated and defended.

At the same time, the dispute tests how far the FCC can go when Congress has spoken directly on an ownership limit. Until legal challenges are resolved, uncertainty remains over whether the eliminated cap will stay off the books or be restored by judicial action.