Key Takeaways
- Cable lobby groups plan to sue the Federal Communications Commission.
- The repeal of the National Television Ownership Rule is expected to increase TV bills for consumers.
- The rule limited the number of broadcast TV stations a single company could own.
Cable lobby groups have announced their intention to sue the Federal Communications Commission (FCC) to block the repeal of the National Television Ownership Rule, which previously limited the number of broadcast TV stations a single company could own.
The cable groups, representing major providers such as Comcast and Charter, argue that the repeal will give larger broadcast TV station groups leverage to demand higher retransmission fees, resulting in increased monthly TV bills for consumers.
In a statement, the cable lobby groups emphasized that the FCC’s decision to repeal the rule is ‘arbitrarily and capriciously ignoring the harms that will surely follow from allowing broadcast station groups to exceed the National Cap.’
This move comes after top cable companies have expanded through mergers, with Charter completing a purchase of Cox in August. The FCC had previously rejected protests from advocacy groups that claimed the cable deal would create unchecked gatekeeper power over Internet distribution and make it easier for the biggest cable companies to raise prices.
The cable lobby groups argue that the repeal will lead to a concentration of media ownership, giving these companies undue influence over the content and pricing of TV services.
The National Television Ownership Rule was designed to prevent a single entity from owning too many broadcast TV stations, ensuring a diversity of voices and viewpoints in the media landscape.
By challenging the FCC’s decision, the cable lobby groups aim to preserve the rule and protect consumers from potential price hikes and reduced competition in the TV industry.
The lawsuit is expected to be filed in the coming weeks, with the cable groups hoping to halt the implementation of the FCC’s repeal order and maintain the current regulatory framework.
