U.S. President Donald Trump said he would be displeased if the Federal Communications Commission rescinded the national cap on station ownership. Currently no owner may reach more than 39% of American households.
Conflict with the FCC
Trump's position conflicts with that of FCC Chairman Brendan Carr, an ally of the president. Carr has long argued that outdated regulations prevent local broadcasters from merging and competing with technology giants.
The National Association of Broadcasters (NAB) – the main industry group – is actively backing Carr's push to eliminate the cap.
Trump's arguments
In a post on Truth Social the president cited a Newsmax piece with comments from the network's CEO Chris Ruddy, a longtime Trump ally. Ruddy has in recent weeks been outspoken against repealing the limit, saying it would silence Republicans.
"It will also allow radical left networks to expand, I will not be pleased. ABC and NBC, in particular, – a disaster. Effectively the hand of the Democratic Party. They should be treated as an unlawful campaign on behalf of the radical left. No expansion of fake news networks. If anything, make them smaller!"
– Trump wrote.
Industry stance
NAB spokesman Alex Siciliano said that modernizing ownership rules is about empowering local broadcasters that serve their communities with news and emergency information, not about enlarging national networks.
He said outdated rules don't constrain networks but rather local stations trying to survive. He called Ruddy's campaign a misleading effort to block competition for local broadcasters from a station that already reaches 100% of the country.
Deals at risk
Local broadcasters for months had hailed Trump’s stance as a victory for station owners seeking consolidation. Several companies have already announced major deals betting on the repeal of the cap:
Nexstar agreed to buy Tegna in a deal worth more than $6 billion. Last week Sinclair announced plans to acquire Scripps.
On Monday Nexstar said that while it agrees with Trump that the status quo is unacceptable, it still supports modernizing FCC rules.
Context
Carr has long backed deregulation for local broadcasters but has not officially announced a decision on repealing the cap. In September the FCC voted to begin a four-year review of several broadcaster ownership rules. Public comment is currently being collected.
Congress approved the current cap in 2004. Some media companies and consumer groups argue that Congress stripped the FCC of the authority to adjust the cap without its approval.
