Washington, D.C. — Following the announcement by California Attorney-General Rob Bonta that California and seven other states have filed a Temporary Restraining Order to block the $6.2 billion merger of broadcast TV giants Nexstar Media Group and Tegna, one day after the Federal Communications Commission (FCC) and US Department of Justice (DOJ) approved the merger, the American Economic Liberties Project released the following statement.

“Trump is seeking to control the media because it is easier to manipulate the narrative around his flailing, dangerous presidency than to govern effectively,” said Lee Hepner, Senior Legal Counsel at the Economic Liberties Project. “Giving Nexstar-Tegna control over 265 TV stations that reach 80% of American households is a powderkeg for censorship. Beyond that, increased retransmission fees will cause nationwide price spikes for consumers, and beleaguered local newsrooms will face more layoffs and closures.”

“California’s urgent leadership comes at a moment when federal antitrust enforcement is betraying consumers, workers, and the public’s interest in a robust and even-handed news media,” Hepner added. “Win or lose in court, state lawmakers and the next Congress should prepare to unwind every single one of these corrupt mergers, restore broadcast ownership caps, strengthen the Communications Act, and reorganize this industry.”

Prior to the filing of their emergency Temporary Restraining Order, California and the same seven states – including Colorado, Connecticut, Illinois, New York, North Carolina, Oregon and Virginia – had filed a lawsuit on Wednesday to block the merger of broadcast media giants Nexstar and Tegna. The following day, the FCC announced its approval of the $6.2 billion merger of local television giants in a closed-door decision without a commission vote. As FCC commissioner Anna Gomez described, this “quiet signoff” is directly intended to avoid public scrutiny. “In conjunction, DOJ granted early termination of its merger review, ending its own investigation into the deal. DirecTV, which distributes local television stations like those owned by Nexstar and Tegna, has also sued to block the merger, alleging that the “massive concentration of market power” would hike their retransmission fees.

Nexstar and Tegna are the owners of the local affiliates of TV stations including ABC, NBC, CBS, and Fox, many of which provide locally-produced news content. The combined broadcaster would create the largest operator of local television stations in the country, with ownership of roughly 265 stations reaching as much as 80% of US households — far exceeding the 39% national audience viewership cap set by Congress.

The FCC also granted Nexstar a waiver permitting ownership of more than two stations in a single market, even while noting that its operations overlapped with Tegna in nearly three dozen markets. Carr’s FCC approved the merger in secret, without a commission vote. While not illegal, the move is perceived as highly unusual, given the highly contentious nature of the approval.

With the combined broadcaster controlling 50 to 70% of broadcast revenue in some areas, it will have the leverage to raise the retransmission consent fees that cable, satellite, and streaming providers pay to local broadcasters to carry their channels: Nexstar executives plan to extract at least $135 million by raising these fees. For this reason, conservative stations like Newsmax and One America News Network oppose the merger. Most of these fees, though, are passed on to consumers through higher pay-TV bills. The deal’s hit to local competition will also likely increase TV advertising rates, making it harder for small businesses to compete on cable.

The Nexstar-Tegna deal has been tainted by allegations of political interference. Last year, Nexstar preempted all of its stations from airing Jimmy Kimmel Live!, in response to blowback over one of Kimmel’s jokes. Last month, Trump endorsed the merger by stating that the transaction “will help knock out the Fake News.”

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