TV Industry Group Plans Legal Action Against Trump FCC Over Ownership Cap Repeal

A coalition of cable industry organizations has lodged a formal complaint against the Federal Communications Commission (FCC), claiming that the recent repeal of the national television ownership cap contravenes legislation passed by Congress in 2004. The cable groups argue that the establishment of a 39% cap on ownership was a clear legislative decision aimed at curbing the FCC’s previous attempts to raise it to 45%.

The petition states, “Congress established the National Cap at 39 percent in the 2004 Consolidated Appropriations Act (CAA) in direct response to the FCC’s attempt to aggressively raise the Cap.” The filing highlights Congress’s consistent emphasis on this 39% threshold within the statute.

While this petition serves as a procedural formality since the FCC is not expected to retract its order, the cable groups plan to escalate the matter by filing a lawsuit in a U.S. appeals court once the FCC order is officially published in the Federal Register. The groups may seek a preliminary injunction in their legal pursuits, aiming to maintain the ownership cap while litigation proceeds.

The filing is supported by regional and state-level cable providers from multiple states including Colorado, Florida, Indiana, Michigan, Minnesota, Mississippi, Pennsylvania, Virginia, Washington, and the six states in New England. This coalition includes both large operators like Comcast, Charter, and Cox, as well as smaller cable companies.

FCC’s Justification for Rule Change

In a recent order, the FCC defended its ability to alter or abolish the ownership cap, arguing that while Congress established the 39% limit, it did so by instructing the Commission to adjust its regulations rather than instituting a fixed legal cap. The FCC contends it has both the authority and responsibility to reassess the national cap rule based on evolving circumstances, asserting the need to modify or discontinue it if it no longer benefits the public.

Despite the 2004 legislation prohibiting the repeal or alteration of the cap during the FCC’s quadrennial reviews of media regulations, the Commission claims it can eliminate the limit outside of this review cycle. They argue that the law delineates the Commission’s ability to review the national cap separately from other media ownership rules that undergo mandatory reviews every four years.