Chris Ruddy’s Paean to TV Regulation

It’s not easy working for President Trump, especially when his friend Chris RuddyCEO of Newsmaxattempts to undermine the administration’s deregulatory agenda. This is the difficult point that the chairman of the Federal Communications Commission Brendan Carr finds himself trying to loosen outdated TV show ownership caps.

The president spoke out this weekend against this deregulation on social networks. “If this also allowed radical left networks to ‘expand’, I would not be happy,” he wrote. “NO EXPANSION OF FAKE NEWS NETWORKS. On the contrary, reduce them! President DJT.” Did Mr. Ruddy give him this false news?

The FCC proposed this summer to reconsider a regulation that limits television networks to 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 broadcasting and other media.

This makes no sense today when Americans get most of their news from sources other than television, and increasingly from social media. Broadcasters argue, correctly, that the cap prevents them from partnering to increase their influence with advertisers, as well as the cable and streaming providers with whom they negotiate to carry their stations.