Clear Channel Move Challenged by FCC

Clear Channel Communications Inc.’s planned purchase of a radio station in Virginia is being challenged by the Federal Communications Commission on claims that it reduces competition in the market.

The FCC said it will hold a hearing on the matter, the first time the agency has done so on market-concentration issues in a radio station sale since 1969. Clear Channel’s purchase of WUMX would reduce the number of “effective” competitors in the Charlottesville radio market to two from three, the FCC said.

Clear Channel is the biggest owner of U.S. radio stations. The FCC hearing comes after Rep. Howard L. Berman (D-Mission Hills) said the Justice Department and the FCC should investigate allegations that Clear Channel is using shell companies to exceed ownership limits.

Clear Channel executives couldn’t be reached to comment. Shares of the San Antonio-based company fell 49 cents to $53.42 on the NYSE, before the news was announced.