US Cable Lobby Prepares Lawsuit Over FCC Decision to Repeal TV Ownership Cap

Major US cable industry groups have announced plans to sue the Federal Communications Commission (FCC) following its decision to repeal the national television audience reach cap. The legal challenge, which will be filed in a US appeals court once the order appears in the Federal Register, seeks to halt an administrative move that eliminates long-standing restrictions on broadcast consolidation.

In a formal petition, the coalitions argued that the FCC's repeal directly breaches the 2004 Consolidated Appropriations Act (CAA), which established a firm 39 percent ceiling on the national audience reach a single broadcast entity can control. “Congress established the National Cap at 39 percent in the 2004 CAA in direct response to the FCC’s attempt to aggressively raise the Cap to 45 percent and made repeated references to the 39 percent Cap in the statute,” the filing stated, asserting that the legislative threshold was unambiguous.

The FCC defends its position by asserting that the 2004 law merely directed the agency to modify existing administrative rules rather than cementing a permanent statutory threshold into US law. Regulators argue that the agency retains both the authority and legal obligation to review, alter, or dismantle ownership rules if market conditions shift and the cap no longer serves the broader public interest, provided such changes occur outside mandated quadrennial reviews.

The petition represents regional and state associations advocating for providers across multiple states, backed by dominant telecom operators such as Comcast, Charter, and Cox. Once their lawsuit is formally lodged, the industry groups intend to request a preliminary injunction to block the repeal and keep the 39 percent cap enforced throughout the judicial process.