WASHINGTON, D.C. — With all eyes today on the Senate Commerce Committee and a hearing focused on whether the 39% national television owner reach cap should be weakened or eliminated, the top Democrat on the House Energy and Commerce Committee penned a letter to FCC Chairman Brendan Carr “sounding the alarm on his efforts to eliminate all media ownership restrictions.”
For Frank Pallone Jr. (D-N.J.), it is his belief that Carr has no legal authority to remove the national media ownership cap and demands that he as FCC Chairman 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. “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.”
That’s precisely why Sen. Ted Cruz (R-Tex.) is convening the Senate Commerce Committee hearing, setting up Congress to respond to any legal challenge of FCC delegated authority.
“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 also criticized Carr for engaging in an effort the Democrat perceives is to benefit President Trump — “particularly transparent given that the FCC is now considering a high-profile merger for Nextstar, a Trump-friendly broadcast group.”
Pallone continued, “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. 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% 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 in the letter to Chairman Carr how media ownership protections are essential to promoting competition, localism, and diverse viewpoints.
