US agency to vote to end 39% local TV station ownership cap

In March, the FCC approved the $3.54 billion sale of local television station owner Tegna to Nexstar NXST.O despite objections from Democratic-led states.

The acquisition, if not reversed by courts, will expand Nexstar's presence to cover 80% of U.S. TV households. The FCC said it was waiving the 39% rule in approving the deal.

A judge has halted the deal pending a court challenge.

In February, President Donald Trump said he supported the deal. Trump has repeatedly pressured Carr to revoke the licenses of Comcast-owned CMCSA.O NBC and ABC stations and Carr ordered an unusual early license review of Disney's DIS.N eight company-owned ABC stations.

Critics have said Carr is violating the free speech rights of broadcasters.

FCC Commissioner Anna Gomez, a Democrat, said the "cap reflects Congress’ judgment that excessive concentration threatens competition, localism, and viewpoint diversity. It is not a suggestion. It is the law."

The National Association of Broadcasters praised Carr's action saying it "reflects the understanding that decades-old ownership restrictions that apply only to broadcasters – and none of our competitors – are out of step with today’s media marketplace."

WASHINGTON, July 15 (Reuters) - The chair of the Federal Communications Commission said Wednesday the agency will vote to rescind the 85-year-old rule that bars broadcasters from reaching more than 39% of the total number of U.S. TV households.

FCC Chair Brendan Carr confirmed Wednesday the agency will vote to lift the cap in favor of a new case-by-case approach. "Our new proposal would allow the FCC to approve deals that exceed the 39 percent cap, but only if doing so would promote the public interest," Carr said in an essay published Wednesday.

Under current rules, stations with weaker over-the-air signals can be partially counted against a company's ownership cap.