Pallone to Carr: FCC’s Efforts to Eliminate Media Ownership Caps Violate the Law and Reek of Political Favoritism

Energy and Commerce Committee Ranking Member Frank Pallone, Jr. (D-NJ) wrote to Federal Communications Commission (FCC) Chairman Brendan Carr sounding the alarm on his efforts to eliminate all media ownership restrictions, telling Carr he has no legal authority to remove the national media ownership cap and demanding that he follow the law. 

“I am deeply concerned about your efforts to eliminate all media ownership restrictions, including one that you have no authority to change,” Pallone wrote in his letter to Carr. “I would like to remind you that you do not have the authority to alter or eliminate the 39 percent national television ownership cap. The limit on how much of the national television audience any one broadcast station ownership group is allowed to reach is enshrined in law, and therefore cannot be changed without congressional action.”

In 2004, with bipartisan support, Congress passed the Consolidated Appropriations Act of 2004 that set the maximum reach for media companies owning TV stations at 39 percent of national television audience households. This law prevents the FCC from changing or eliminating the 39 percent national cap.

“The actions you are considering are not only unlawful, but they would also lead to unprecedented media consolidation both in local markets and at a national scale, benefiting only the largest station owners,” Pallone continued. “Your apparent attempt to relax the national ownership cap contradicts the text of the statute, legislative history, and contemporaneous understanding of the law.”

Pallone went on to blast Carr for embarking on this illegal crusade in an effort to benefit President Trump – particularly transparent given that the FCC is now considering a high-profile merger for Nextstar, a Trump-friendly broadcast group.

“I have observed the first year of your chairmanship to be marked by widespread political favoritism. In this instance, your exploration of the national cap seems obviously designed to allow a political ally, Nexstar, to complete a proposed $6.2 billion acquisition of rival broadcast group, Tegna,” Pallone wrote. “Nexstar proposed this multibillion-dollar merger knowing that, at the time of filing, it could not be completed under the law. The deal, if approved, would violate the 39 percent ownership cap even when accounting for the technically obsolete UHF discount. To accomplish the deal, Nexstar has explicitly asked you to either remove the national cap or waive the cap. As discussed above, both options would violate the law.”

Pallone also stressed how media ownership protections are essential to promoting competition, localism, and diverse viewpoints.

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