In a significant ruling, the U.S. Court of Appeals for the Eighth Circuit has delivered a partial blow to the Federal Communications Commission’s (FCC) long-standing Local Television Ownership Rule, specifically targeting the provision known as the Top-Four Prohibition. The decision, handed down on July 23, 2025, marks a pivotal moment in the ongoing debate over media consolidation and competition in local television markets.
The Top-Four Prohibition has been a cornerstone of the FCC’s regulatory framework for decades, preventing broadcast station owners from controlling more than one of the top four rated full-power television stations in a single market. The FCC has long defended the rule, arguing it promotes competition, localism, and viewpoint diversity by preventing dominant players from consolidating control over the most influential stations. In its 2023 Order, the FCC reaffirmed the prohibition and introduced minor revisions to how it determines a station’s “top-four” status, incorporating audience share data that now accounts for multicast streams.
However, the Eighth Circuit found the FCC’s justifications lacking, criticizing the agency for failing to provide current evidence to support the rule. “The FCC’s justifications for the Top-Four Prohibition run counter to the evidence before the agency,” the three-judge panel wrote in its decision. Broadcasters challenging the rule presented data from dozens of markets where the top-ranked station’s audience share far exceeded the combined totals of the second-, third-, and fourth-ranked stations. This evidence, the court argued, undermines the FCC’s claim that top-four combinations inherently harm competition.
The court also took issue with the FCC’s assertions about the role of top-four stations in producing local news and maintaining affiliations with major broadcast networks like ABC, CBS, NBC, and FOX. The panel noted that the FCC relied on outdated studies and offered “conclusory assertions” without sufficient data to back its claims. This lack of empirical support weakened the agency’s case for maintaining the prohibition.
In a further rebuke, the court vacated a 2023 FCC change that tightened restrictions on broadcasters acquiring additional network affiliations through multicast streams or low-power TV stations. The FCC had argued that the change closed “loopholes” that allowed broadcasters to skirt the Top-Four Prohibition. However, the court found the agency’s reasoning inadequate, stating that the restriction could stifle innovation, particularly in smaller markets where broadcasters often rely on multicast streams to deliver diverse programming.
The decision has sparked varied reactions. Broadcasters, including groups like the National Association of Broadcasters, hailed the ruling as a step toward modernizing outdated regulations, arguing that the Top-Four Prohibition fails to account for the competitive pressures posed by streaming platforms and cable networks. Critics, however, warn that loosening ownership restrictions could lead to greater consolidation, potentially reducing local news coverage and limiting diverse voices in media markets.
The FCC now faces the challenge of revisiting its ownership rules to align with the court’s demand for robust, up-to-date evidence. Industry analysts predict the agency may need to conduct new studies to justify any future iterations of the rule or risk further legal challenges. For now, the ruling opens the door for broadcasters to pursue mergers and acquisitions that were previously restricted, potentially reshaping the landscape of local television.
As the media industry continues to evolve, the Eighth Circuit’s decision underscores the tension between regulatory oversight and the need for flexibility in a rapidly changing market. The FCC has not yet announced whether it will appeal the ruling or revise its approach to the Local Television Ownership Rule.
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