The United States Federal Communications Commission (FCC) has voted to remove a longstanding rule that limited local broadcast station owners from reaching more than 39 percent of the total number of U.S. television households. The commission's 2-1 vote on Thursday favors a new case-by-case approach, a move critics argue will fuel excessive market consolidation.

This 39 percent cap, most recently set in 2004, has served as a safeguard against the concentration of media ownership in the U.S. since 1941. The decision to lift it is seen by proponents as a necessary step to help local broadcasters compete in a challenging media landscape, particularly in contrast to the decline of local newspapers.

FCC Chairman Brendan Carr stated that the rule change aims to "stop hamstringing this one segment of the broader market with outdated restrictions." He pointed to the decline of local newspapers, suggesting that similar outdated regulations could harm local broadcast television. The FCC indicated that future merger applications exceeding the 39 percent threshold will be evaluated individually to determine if they serve the public interest, aiming to "remove artificial restrictions on opportunities for broadcast television to attract capital and generate revenue."

However, the sole Democratic commissioner, Anna Gomez, dissented, calling the proposal "illegal" and asserting that only Congress has the authority to lift such a cap. She warned that the decision "is an invitation to bring in a lot of transactions" and would hand "more control of the public airwaves to a small number of companies." Critics fear this will lead to less diverse local news and programming.

Carr countered that lifting the cap would enable local television owners to invest more in local programming and strengthen their negotiating position against national networks. He argued that the current rules have contributed to the struggles of local outlets.

The FCC's decision comes after it approved a $3.54 billion sale of local television station owner Tegna to Nexstar in March, even with objections. This acquisition, if finalized, could extend Nexstar's reach to cover 80 percent of U.S. TV households, a move for which the FCC stated it was waiving the 39 percent rule.

Concerns about the FCC's authority and the potential for increased media consolidation have been raised by various parties. Senate Commerce Committee Chair Ted Cruz had previously expressed skepticism regarding the FCC's ability to raise the cap without congressional action.

The implications of this change are significant, potentially reshaping the landscape of local television ownership and raising questions about the future diversity and accessibility of local news content across the United States.