The FCC voted 2-1 to lift the cap in favor of a case-by-case approach. The commission's sole Democrat, Anna Gomez, said the proposal was illegal and ​argued only Congress can lift the cap. Many critics argue the move will lead to excessive market power ​among station owners.

Under the rules, stations with weaker over-the-air signals can be partially counted against ⁠a company's ownership cap. The FCC has restricted ownership of local broadcast stations since 1941 and most recently raised ​the cap to 39% in 2004.

MOVE WOULD HELP BROADCASTERS SURVIVE: CHAIR

FCC Chair Brendan Carr said the move will help local ​broadcasters survive and pointed to the sharp decline in local newspapers. "We should stop hamstringing this one segment of the broader market with outdated restrictions," Carr said. "The FCC kept a rule on the books in the name of localism that contributed to the gutting of local newspapers ... ​I don’t want local broadcast TV to go the way of local newspapers."

The FCC said the new rule would ​consider applications for TV company mergers that exceed 39% on an individual basis to determine if they are in the public interest. ‌The agency ⁠said it would "remove artificial restrictions on opportunities for broadcast television to attract capital and generate revenue."

Gomez said the decision is "an invitation to bring in a lot of transactions." She added lifting the cap hands "more control of the public airwaves to a small number of companies whose coverage pleases this administration ... It is putting its thumb on the scale in favor ​of content that this administration ​likes."

Carr says the change would ⁠allow local TV station owners to increase investment in local programming and give them more leverage against national networks, which he says have too much power.

In March, the FCC ​approved the $3.54 billion sale of local TV station owner Tegna to Nexstar (NXST.O) despite objections from ​Democratic-led states.

The acquisition, ⁠if not reversed by courts, will expand Nexstar's presence to cover 80% of U.S. TV households. The FCC has said it was waiving the 39% rule in approving the deal.

Senate Commerce Committee Chair Ted Cruz, a Republican from Texas, said last ⁠month he ​is skeptical the FCC can hike the 39% cap without an act ​of Congress.

Senator Elizabeth Warren, a Massachusetts Democrat, said Carr "is trying to illegally rewrite the rules to make it easier for billionaires to line their own ​pockets while jacking up costs and controlling what Americans watch."