Ownership Caps, Public Interest Collide in FCC Oversight Hearing

0

Deregulation, broadcast ownership limits, and public interest authority defined a contentious US House Energy & Commerce Committee oversight hearing on the FCC, with lawmakers sharply divided over how radio should be regulated as it competes with digital platforms.

Republican members framed deregulation as a necessary response to market realities facing local radio and television stations.

E&C Subcommittee on Communications and Technology Chair Richard Hudson (R-NC) set the tone early, warning that, “Burdened by outdated regulations, local broadcasters are increasingly unable to compete, a reality reflected in newsroom closures and the growing concentration of influence among national networks and social media platforms.” He argued that current ownership caps “prevent broadcasters from combining or expanding operations, constraining their ability to invest in local journalism.”

E&C Chair Brett Guthrie (R-KY) added his support, saying, “It is important to remove outdated regulations and I appreciate Chairman Carr’s efforts to modernize these legacy regulatory structures to reduce burdens on incumbent industries.”

The open support was welcomed by the National Association of Broadcasters, who have been leading the charge from within the industry to loosen the caps on radio and television ownership per market as part of the FCC’s 2022 Quadrennial Review, after being blocked by the previous Democratic-led Commission under former Chair Jessica Rosenworcel.

“We are grateful to Chairmen Brett Guthrie and Richard Hudson for their leadership in urging the FCC to modernize outdated ownership restrictions,” said NAB President and CEO Curtis LeGeyt in a statement released during the hearing. “Their support reflects growing recognition that modernizing these rules is essential to ensuring local stations can compete, innovate and continue serving their communities with trusted information. We look forward to working with Chairman Carr and the FCC to move this issue forward.”

Broadcast operators at the local and national levels have also thrown their weight behind the push, while the National Association of Black Owned Broadcasters are against ownership deregulation, as, “relaxation or repeal of the Commission’s broadcast ownership rules has led to excessive concentration of broadcast station ownership and a decline in minority ownership.”

In that spirit, Democratic Committee members countered that ongoing deregulation risks weakening localism, diversity of viewpoints, and the FCC’s independence. Lone Democratic FCC Commissioner Anna Gomez reinforced that view, grounding her remarks in the agency’s statutory history and constitutional constraints.

“When Congress created our predecessor, the Federal Radio Commission, it considered putting the Commission under the Department of Commerce,” Gomez said. “And Herbert Hoover at the time said it was a terrible idea because it was dangerous to have the regulator of the most important communications medium at the time being overseen by a single person.” She said that history explains why independence remains essential: “It’s important to have an independent agency because we must be seen as an expert body that makes decisions based on that expertise and not based on the political whims of one administration.”

Gomez described the caps as a safeguard for community-focused broadcasting. “Our core principles when we talk about the public interest in local broadcasting are localism, diversity of viewpoints, and competition,” she said. “The caps ensure that we have multiple voices in every market.” She warned that relaxing those limits could concentrate influence and reduce local coverage.

The almost three and a hour hour hearing also made plenty of time to address recent concerns about how the FCC defines and applies the public interest standard. House Energy and Commerce Committee Ranking Member Doris Matsui (D-CA) accused FCC Chairman Brendan Carr of stretching that authority beyond its limits.

“Chairman Carr has stretched the standards of acting in the public interest and preventing news distortion beyond recognition,” said Rep. Matsui, noting that FCC guidance restricts enforcement to cases of deliberate distortion, “not mere inaccuracy or difference of opinion.”

Carr defended his strong deregulatory approach throughout the hearing, tying broadcast policy to broader infrastructure and spectrum goals. He argued that reducing regulatory burdens, expanding spectrum availability, and modernizing ownership rules are necessary to support investment, competition, and communications resilience, including during emergencies.

As the FCC debates the 2022 Quadrennial Review, the deadline for public reply comments is this Friday.