FCC scrutinizing Clear Channel

By Greg Wright
Gannett News Service

WASHINGTON — The Federal Communications Commission is investigating whether media giant Clear Channel Communications used illegal tactics to grab a dominant share of the U.S. radio market.

FCC officials said Clear Channel's recent radio station acquisitions appear to have been done legally and it is too early to say whether a probe would uncover wrongdoings.

"We can't prejudge what we'll do in the future," said FCC spokeswoman Michelle Russo. Russo declined to say when the investigation would be complete.

If the FCC finds the company guilty of unfair business practices, the agency could fine Clear Channel thousands of dollars, revoke its licenses to run certain stations, or stop it from buying more, industry experts said.

The allegations against Clear Channel are all without merit, said Pam Taylor, a spokeswoman for Clear Channel's radio division in Covington, Ky.

Taylor says the company's success makes it an easy target for critics.

Still, the FCC appears to be putting the San Antonio, Texas-based company under greater scrutiny.

Last week, the agency delayed Clear Channel's plan to buy WUMX-FM in Charlottesville, Va., from Air Virginia Inc., saying the deal could hurt radio market competition in the city of 40,000.

The FCC said it will have a hearing to decide whether the deal will go through. The move surprised industry observers, who said the agency has not had a formal inquest on radio market concentration in 33 years.

The FCC — particularly the agency's Republican chairman, Michael Powell — also has a reputation of taking a laissez-faire approach toward big business.

Clear Channel is the largest radio station owner in the country with about 1,200 radio stations nationwide, including the KSSK family of seven stations in Hawai'i.

But two lawmakers — Democratic Reps. Howard Berman of California and David Weiner of New York — have criticized the company's business practices in recent months.

Residents in Chillicothe, Ohio, and Fort Collins, Colo., also have sent complaints to the FCC, claiming Clear Channel is trying to dominate local radio markets.