Chris Ruddy’s Paean to TV Regulation

It isn’t easy working for President Trump, especially when his friend Chris Ruddy, CEO of Newsmax, is trying to undermine the Administration’s deregulatory agenda. That’s the tough spot that Federal Communications Commission Chair Brendan Carr finds himself in as he tries to relax antiquated TV broadcast ownership caps.

The President came out swinging against this deregulation on social media over the weekend. “If this would also allow the Radical Left Networks to ‘enlarge,’ I would not be happy,” he wrote. “NO EXPANSION OF THE FAKE NEWS NETWORKS. If anything, make them SMALLER! President DJT.” Did Mr. Ruddy feed him this fake news?

The FCC proposed this summer to reconsider a regulation that limits TV broadcasters from owning stations that collectively reach more than 39% of U.S. households. Imagine if no more than 39% of Americans could access YouTube or Netflix. The ownership cap originated in the 1940s when there was little competition in broadcast and other media.

It makes no sense today when Americans get most of their news from sources other than broadcast TV, and increasingly from social media. Broadcasters argue with some cause that the cap prevents them from combining to increase leverage with advertisers, as well as cable and streaming providers that they negotiate with to carry their stations.