NEW YORK (TheStreet) -- Analysts expect the FCC to change media ownership rules when it comes under Republican control in January.
The rule changes would include softening the rule against media cross-ownership that prohibits companies from owning newspaper and TV or radio stations in the same market.
This rule is from the 1970s and is outdated, News Media Alliance CEO David Chavern said on CNBC's "Closing Bell" on Friday afternoon. "A couple of things have happened since then," he said.
First, people consume more hard news than at any other point in history, Chavern noted. "The audience is growing. All of the statistics show that."
Second, the media environment as a whole has "transformed completely," he noted. So if you want to dissolve "old, bad regulation," then getting rid of the cross-ownership ban should be first on your to-do list.
If the rule does get dissolved, then we shouldn't need to worry about consolidation in the sector, he claimed. Instead, we need to worry about "who we can trust," which is the traditional legacy news media.
His comments come after Facebook (FB), Alphabet (GOOGL) and Twitter (TWTR) have come under fire since the presidential election last week for allowing fake news to spread among the population.
If the FCC got rid of this ban, then print and digital news producers would attract more investment, which would help fund "real solid" journalism, he noted. This would obviously help solve the problem of fake news.
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