After Newsmax formally asked the FCC to block the proposed merger of Nexstar Media Group and TEGNA, Rep. Elise Stefanik (R-NY) has joined the growing list of those opposing the move.
In late December, Newsmax CEO Chris Ruddy penned a letter to the FCC formally petitioning the commission to block the move. Ruddy argued that the proposed merger “violates the law and creates an unprecedented concentration of power in the hands of one broadcaster.”
Newsmax’s focus on its opposition is that the current ownership limits make a single entity owning enough stations to reach more than 39% of the U.S. TV households illegal. Should the proposed merger with TEGNA go through, Nexstar Media Group would reach nearly 80% of all households.
“This merger would create an unprecedented and dangerous consolidation within the broadcast TV industry, giving them immense control over local news and political news coverage,” Newsmax CEO Chris Ruddy — who signed the filing with the FCC for the network — said in a statement.
“This merger is no better than others the FCC has already blocked,” the filing from Newsmax concludes. “The Commission should reject the proposed transaction because it violates the law, will harm competition, and will damage the public interest.”
Meanwhile, Congressional Republicans are joining Ruddy and others in their opposition to the merger. Rep. Elise Stefanik (R-NY) sent a letter to FCC Chair Brendan Carr in December, sharing similar sentiments.
“Allowing these station groups and networks, many of which have biases towards liberal viewpoints, to consolidate would give them the ability to control and coordinate local news against Republicans,” Stefanik wrote. “Greater consolidation would also increase TV subscription bills for consumers via increased retransmission fees at a time when many American families are struggling to pay their bills.
“Consolidation would also end localism in smaller media markets in favor of national talking points provided by corporations based in major cities. The FCC was created with a mandate to promote localism, competition, and diversity of voices. Altering the statutory ownership cap or approving mergers that increase local market concentration directly undermines that mandate.”
Stefanik continued by sharing her belief that allowing broadcast groups to surpass the 39% ownership cap is a net negative for consumers and the broadcast space — in spite of increased competition and an uneven playing field compared to big tech firms.
“While I recognize concerns about the growing power of large tech companies to shape the media
environment, the answer to this growth is not to spur significant consolidation in the broadcast TV sector,” Stefanik wrote. “Expanding the reach of the large broadcast groups or allowing these groups to own multiple stations in one market will only further limit competition, increase costs, and narrow the range of viewpoints available to the public.
“Broadcast licenses are public property and are intended to serve local communities and the public interest. Both raising this cap and approving this merger is not in the public interest of Americans, or within the authority of the FCC. Keeping the cap in place, and Nexstar and TEGNA separate, will protect local and conservative voices and keep costs from rising rapidly due to decreased competition.”
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