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Rep.: Investigate Clear Channel
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Progressive Portal
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Feb 12, 2002 22:38 PST
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Rep. Howard Berman (D-CA) has called for the Federal Communications
Commission and the Department of Justice to investigate practices of
Clear Channel Communications, owner of KMEL-FM in San Francisco.
Specifically, Rep. Berman accused Clear Channel of trying to gobble up
radio and television stations illegally by hiding behind "third parties,
shell corporations, or related entities," and of attempting to coerce
major artists to use the company's promotion services by denying air
time on CC's 1,600 stations throughout the country.
A news release about Rep. Berman's call for an investigation is at:
http://www.house.gov/berman/pr012202.htm
The letter below may also be read on Rep. Berman's Web site at:
http://www.house.gov/berman/pr012202.htm
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January 22, 2002
The Honorable John Ashcroft
U.S. Attorney General
Department of Justice
950 Pennsylvania Ave. NW
Washington DC 20530
The Honorable Michael K. Powell, Chairman
Federal Communications Commission
The Portals II
445 12th Street SW
Room 8B201
Washington DC 20554
Dear Attorney General Ashcroft and Chairman Powell:
I write to express my serious concern about vertical and horizontal
integration in the radio, television, and concert promotion industries.
Specifically, I am concerned about allegations that consolidation of
these industries by Clear Channel Communications, Inc. has negatively
affected recording artists, owners of sound recording copyrights,
consumers, advertisers, and competitors in the radio and television
industries. I would like to know whether your agencies have investigated
the allegations detailed below, and if not, would encourage you to do
so.
According to numerous press reports, as well as first hand accounts by
affected recording artists and copyright owners, Clear Channel's
consolidation of the radio and concert promotion industries has had a
variety of negative repercussions on recording artists, copyright
owners, and consumers. It has been reported that Clear Channel has
"punished" recording artists, including Britney Spears, for their
refusal to use its concert promotion service, Clear Channel
Entertainment, by "burying" radio ads for their concerts and by refusing
to play their songs on its radio stations. The consolidation of the
radio industry also lends growing support to persistent allegations that
record companies often must pay radio stations to play the music of
their artists.
These allegations, if true, have obvious, negative implications for
consumers, both through higher concert ticket prices and reduced
selections of broadcast music. To the extent your respective agencies
have jurisdiction to do so, I believe you should investigate and fully
prosecute any violations of the antitrust laws or FCC regulations that
have occurred in the above-referenced circumstances.
I am also concerned about related reports of "parking" or "warehousing"
of radio and television stations by Clear Channel. These reports allege
that Clear Channel has intentionally flouted FCC rules limiting
ownership of multiple radio and television stations in numerous markets
around the country, including Monterey, San Diego, San Francisco, Hudson
NY, Catskills NY, Charlotte NC, Chillicothe OH, Oklahoma City OK, and
Waco TX. According to the press accounts, Clear Channel often arranges
for third parties, shell corporations, or related entities to buy radio
and television stations in markets in which Clear Channel has already
reached the ownership caps or been faced with public opposition or
regulatory scrutiny. Clear Channel allegedly has arranged to officially
"buy" these stations when, and if, the FCC lifts those caps.
I believe you should fully investigate these "warehousing" and "parking"
allegations, and if true, should prosecute any violations of law. These
acts may be illegal in and of themselves, and are likely to exacerbate
the negative effects, outlined above, that consolidation has had on
recording artists, copyright owners, advertisers, and consumers. It is
also apparent that any investigation of possible antitrust violations by
Clear Channel must consider the existence of "warehousing" or "parking"
arrangements.
I would appreciate the favor of a reply at your earliest convenience
concerning your agencies' plans on this matter.
Respectfully,
HOWARD L. BERMAN
Member of Congress
Contact info for Berman:
http://www.house.gov/berman/cc_012202.htm
Contact info for Powell/FCC: mpow-@fcc.gov
http://www.fcc.gov/commissioners/powell/
Contact info for Ashcroft/DOJ: Ask-@usdoj.gov
http://www.usdoj.gov/contact-us.html
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