A new working paper published this week by the American Enterprise Institute (AEI) has sparked conversation in Washington by arguing that the Federal Communications Commission (FCC) may have outlived its original economic purpose. The paper, released on Thursday, contends that the agency’s regulatory framework, established in the era of scarce spectrum and limited competition, is increasingly obsolete in today’s digital-first media environment.
The authors suggest that the explosive growth of broadband, streaming services, and unregulated digital platforms has fundamentally altered the marketplace that the FCC was designed to oversee. The paper argues that market forces and general competition laws are now better suited to protect consumers and ensure fair play than the commission’s specific, and often rigid, sector-based regulations. This perspective aligns with long-standing arguments from broadcasters who feel that current FCC rules—such as ownership caps and public file requirements—unfairly handicap traditional radio and TV operators while their digital competitors operate with little to no oversight.
While the paper is academic in nature, its publication by a prominent policy institute suggests a growing intellectual momentum for deregulation. For small market broadcasters, who often bear a disproportionate burden of regulatory compliance costs, such a shift in policy thinking could eventually lead to a more level playing field. The document calls on lawmakers to reconsider the scope of the Communications Act to better reflect the realities of the 2026 information economy.