Trump says he opposes lifting broadcast ownership cap, defying his FCC

Between the lines: Carr has long advocated for repealing decades-old consolidation rules and removing the cap, arguing the FCC doesn’t need congressional approval to do so.

• The National Association of Broadcasters (NAB), the primary trade group for the industry, strongly supports Carr’s position.
• But consumer groups and some smaller media companies, like Newsmax, disagree, arguing Congress removed the FCC’s authority to adjust the ownership cap when it approved the current limit in 2004.
• Newsmax CEO Chris Ruddy, a longtime Trump ally, has been vocal in recent weeks about his opposition, arguing removing the cap would silence Republicans.

What they’re saying: In a Truth Social post linking to a Newsmax story with Ruddy’s comments, Trump said removing the cap “would also allow the Radical Left Networks to ‘enlarge,’ I would not be happy.”

• ”ABC & NBC, in particular, are a disaster — A VIRTUAL ARM OF THE DEMOCRAT PARTY. They should be viewed as an illegal campaign to the Radical Left. NO EXPANSION OF THE FAKE NEWS NETWORKS. If anything, make them SMALLER!”

The other side: “Ownership modernization is not about making national networks larger, it is about empowering local broadcasters that serve their communities with trusted news, emergency information and local journalism,” NAB spokesperson Alex Siciliano said in a statement to Axios.

• “These outdated rules do not restrict networks, they restrict local stations that are trying to survive. Chris Ruddy’s misleading campaign is about preventing those local broadcasters from competing on the same playing field as a station like his that already reaches 100 percent of the country.”

State of play: Local broadcasters have spent months celebrating Trump’s win as a victory for station owners trying to consolidate. Several have already introduced major deals, presuming the cap would be lifted.

• Nexstar agreed to buy Tegna in a deal valued at over $6 billion.
• Just last week, Sinclair said it wants to buy Scripps.

Between the lines: Broadcasters that are betting that the cap will be lifted are trying to walk a fine line between pushing back against the president and not getting on his bad side.

• Nexstar on Monday said that while it agreed with President Trump “that the status quo is no longer acceptable,” it still advocated for modernizing the FCC’s rules.

Of note: While Carr has long supported deregulation for local broadcasters, he still hasn’t officially made a decision about whether the FCC would remove the cap, possibly trying to get ahead of the political dynamic currently at play.

What’s next: The FCC voted in September to start a quadrennial review of several broadcast ownership rules. It’s currently seeking public comment.

Editor’s note: This story was updated with comment from Nexstar.