Newsmax CEO Chris Ruddy plans to sue the FCC over its decision to eliminate the national broadcast ownership cap. Ruddy has repeatedly opposed the agency’s effort, warning he’d pursue litigation if commissioners approved the change.
What We Know: The FCC voted 2-1 last week to eliminate the rule limiting broadcasters from reaching more than 39% of U.S. television households. The agency instead adopted a case-by-case approach for evaluating broadcast ownership transactions. Ruddy discussed his plans during an interview with The Desk’s Matthew Keys. Previously, he argued the FCC lacked authority to eliminate the ownership restriction because Congress established the framework requiring the agency to maintain a national cap. Ruddy has consistently pushed back against efforts to eliminate the broadcast ownership cap. Newsmax also urged the FCC to reject Nexstar’s proposed acquisition of TEGNA, arguing greater consolidation could increase retransmission fees and give large station groups more leverage over smaller networks.
What They Said: “It’s a blatant violation of federal law,” Ruddy said in response to the vote. “Congress set the cap. It didn’t want the FCC to set the cap. Almost every FCC chairman has agreed with that … It doesn’t make any sense, other than you want to circumvent Congressional law.” -Newsmax CEO Chris Ruddy
What Remains Unclear: Ruddy has indicated he’ll pursue litigation, but the specific court, timing, and legal arguments behind Newsmax’s challenge remain unclear. The FCC maintains it has authority to modify its ownership rules, setting up a potentially significant legal fight.
What It Means: A Newsmax lawsuit could add another obstacle to broadcasters seeking greater consolidation. Meanwhile, the FCC’s decision could clear the way for larger station groups to expand their national reach, making the legal challenge one to watch across the television industry.
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Garrett Searight is Barrett Media’s News Editor, which includes writing daily news stories, features, and opinion columns. He joined Barrett Media in 2022 after a decade leading several radio brands in several formats, as well as a 5-year stint working in local television. In addition to his work with Barrett Media, he is a radio and TV play-by-play broadcaster. Reach out to him at Garrett@BarrettMedia.com.