AI-rewritten: This is a summary of an article from Ars Technica, rewritten by AI (Qwen, running locally) to make it easier to read. The facts come from the original article – read it for the full story.

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Cable industry groups have notified the Federal Communications Commission (FCC) that they will sue the agency to block its decision to repeal the National Television Ownership Rule. This rule limits how many broadcast TV stations a single company can own, currently capping ownership at 39 percent of all US households. The cable lobby argues that removing this limit allows large broadcast groups to demand higher retransmission fees from cable providers, which would lead to increased monthly bills for consumers. They claim the FCC’s decision arbitrarily ignores these potential harms.

The FCC voted to eliminate the rule on August 6 and published the order on October 1 after a long delay. FCC Chairman Brendan Carr stated that replacing the strict cap with a "case-by-case review" system would let the agency approve deals it believes serve the public interest while rejecting others. Critics note that this approach could allow Carr to influence news coverage by favoring specific companies, especially given his history of threatening license revocations for broadcasters disfavored by President Trump.

The cable groups’ petition argues that Congress explicitly set the 39 percent limit in the 2004 Consolidated Appropriations Act and intended it as a fixed statutory cap, not just a regulatory guideline. They contend the FCC lacks the authority to change this specific numerical threshold outside of its regular four-year review cycles. Meanwhile, media advocacy group Free Press plans to appeal the decision in court, arguing that only Congress can change such limits and criticizing Carr for prioritizing consolidation over public interest.