FCC Settles Payola Case with Giant Radio Firms

The Federal Communications Commission is set to announce an anti-"payola" settlement with four major radio broadcasting companies. The tentative agreement would include a significant increase in airtime for "independent label" and "local" artists.

The FCC settlement, which is expected to be announced this week, includes a $12.5 million fine divided among four major broadcasting companies: CBS Radio, Clear Channel Communications, Inc., Entercom Communications Corp., and Citadel Broadcasting Corp.

The full commission has not voted on the settlement, but it reportedly includes an agreement that the four companies' stations will collectively broadcast 8,400 half-hour segments of "independent label" and "local" artists per year.

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