Publicly traded US telecommunications conglomerate Sinclair Broadcast Group has been hit with the largest ever civil penalty imposed on a broadcaster by the Federal Communications Commission (FCC).
The FCC announced on Wednesday that Sinclair had agreed to pay a hefty $48 million fine along with abiding by its new compliance plan in order to settle three open investigations against it. The newly imposed penalty overtook the FCC's record $24 million fine, which it had imposed on Univision back in 2007.
The investigation into the country's largest owner of local television stations stemmed from its attempt to acquire stations owned by Tribune Media in 2018. The FCC found out that Sinclair had not followed the proper information disclosure requirements while negotiating the acquisition deal valued at an estimated $3.9 billion.
FCC commission chair, Ajit Pai, publicly criticized the transaction while it was being negotiated. The investigation into the negotiations was eventually referred to an administrative judge hearing and brought into question Sinclair's divestments. On Wednesday, Pai stated that Sinclair's conduct during the acquisition attempt was "completely unacceptable."
Sinclair, which has more than 200 local television stations in the US, is the biggest local TV player in the country. The heavily conservative-leaning broadcaster was accused of not fully identifying the sponsors of its content and failing to meet its obligations to negotiate retransmission consent agreements. Sinclair eventually admitted to violating the FCC's sponsorship identification rules.
The FCC stated that if the acquisition was allowed to proceed, Sinclair would have coverage of a vast majority of the US. After criticism over the transaction had escalated, Tribune Media eventually backed out of the merger agreement.
Pai noted in the FCC's statement that he hopes the hefty penalty would serve as a warning to other companies seeking approval. He added that he is currently not entertaining requests to revoke Sinclair's license, explaining that the demands were "politically motivated" and that the First Amendment still applies no matter the company's viewpoints.
In response to the settlement, Sinclair released a statement claiming that it was pleased with the resolution and it is prepared to move forward and leave the issue behind it. The company added that it will continue to work constructively with regulators to ensure that it complies with all US laws, rules, and regulations.
Sinclair is majority controlled by the family of its founder, Julian Sinclair Smith. The broadcaster has faced major criticism over its alleged ties with the Trump administration, its lack of diversity, and its one-sided propaganda against its political opponents.
