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

WASHINGTON, Aug. 6 (Reuters) - The Federal Communications Commission voted Thursday to rescind the rule that bars local broadcast station owners from reaching more than 39% of the total number of U.S. TV households in a move that could help spark more industry consolidation.

The FCC voted 2-1 to lift the cap in favor of a new case-by-case approach. The commission's sole Democrat, Anna Gomez, said the proposal was illegal and argued only Congress can lift the cap.

Under the rules, stations with weaker over-the-air signals can be partially counted against a company's ownership cap. The FCC has limited the number of stations local broadcast station owners can own since 1941 and most recently raised the cap to 39% in 2004.