FCC Weighs Lifting Ban on Major Broadcast Network Mergers

The U.S. Federal Communications Commission voted on Tuesday to contemplate the possible discontinuation of a long-standing ban on mergers between the largest four broadcast networks. Furthermore, the FCC is also considering a revision of other media ownership rules.

The FCC has reported that it will consider public feedback before deciding whether to overturn the rule that prevents a merger among the “Big Four” networks: NBC, owned by Comcast, Walt Disney Co’s ABC, Paramount Skydance’s CBS, or Fox.

The FCC is also soliciting public opinions on whether to abolish or amend a rule that restricts a single entity from owning more than two of the four largest television stations in the same local market. Another rule under scrutiny limits the total number of local radio stations that an entity may own in a single market.

Earlier, the FCC had noted that a version of the rule prohibiting dual ownership of networks has been in existence since the 1940s. A media ownership review in 2018 concluded that the bar should be maintained “because it advances the agency’s core policy objectives of competition and localism.”

The FCC Chair, Brendan Carr, stated, “We intend to take a fresh approach to competition by examining the broader media marketplace, rather than treating broadcast radio and television as isolated markets.” He further added, “If we determine that any rule no longer serves the public interest, we will fulfill our statutory duty to modify or eliminate those rules.”

FCC Commissioner Anna Gomez, a Democrat, suggested that the commission should consider “modifications to current rules that would both shore up the economics of broadcast television and preserve the public interest.”

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This development follows earlier reports that, in 2017, the FCC voted to eliminate the 42-year-old ban on cross-ownership of a newspaper and TV station in a major market. The agency also voted to ease the process for media companies to acquire additional local TV stations in the same market.

This decision could reshape the landscape of media ownership in the United States. As always, we will continue to monitor this situation closely and keep you informed of any developments.