WASHINGTON—The NCTA has filed comments with the Federal Communications Commission opposing E.W. Scripps acquisition of TV stations from INYO that argue the agency lacks the authority to waive ownership caps on broadcast station groups.
DirecTV has also filed comments opposing the deal.
Earlier this year, Scripps has announced that it is exercising its option to re-acquire 23 ION-affiliated stations for about $54 million. The stations were divested to INYO Broadcast Holdings in 2021 as part of its acquisition of ION so that the deal would comply with Federal Communications Commission ownership caps.
The plan to reacquire them comes at a time when the FCC has been more open to altering or eliminating ownership caps,
The proposed acquisition would, if approved by the agency, create a combined station group covering 40.29% of the country or 1.29 percentage points more than the current ownership cap of 39%. Under FCC Chair Brendan Carr the agency has asserted its authority to waive the ownership caps if they are in the public interest.
Recently, the Media Bureau did waive ownership rules in its approval of the Nexstar/Tegna merger, which would create a combined group covering 54.5% of the U.S. population or 15.5 percentage points over the cap. That decision is now being litigated in Federal courts in California and Washington D.C.
In its filing, the cable-backed NCTA argued that Congress did not give the FCC authority to waive the caps and that even if it did, the agency’s Media Bureau did not have the power to do so on "delegated authority”
“Accordingly, the Commission itself should resolve any `questions regarding the Commission’s authority in this area.’” the group argued. “And, as discussed above, that resolution should make clear that the Commission lacks authority to repeal or modify the National Cap.”
The full filing is available here.
