COMPETITION
Broadcasting, record labels

Radio broadcast group Entercom has reached a settlement with the New York Attorney General. Eliot Spitzer over payola charges. Spitzer targeted the US media conglomerate after reaching a settlement with all four major record companies for. Entercom had denied any wrong doing, claiming their business relationships with music companies were within US broadcasting regulations. The Company says that it only settled to avoid fighting a lengthy and costly lawsuit. In a statement the company said: “In the interests of the company, our employees and our shareholders, we have chosen to resolve this matter immediately and without extensive and costly litigation. The court did not find any liability, nor are we admitting liability with this settlement. Rather, we are taking the opportunity to put the investigation behind us and move forward.” As part of the deal the radio firm will pay a $4.25 million fine, of which $3.5 million will go to music education programmes. Entercom also pledged to introduce internal measures to ensure any practices considered as payola by the New York Attorney General’s office could no longer take place. Entercom is the second radio firm to settle with Spitzer over the issue of payola after CBS Radio settled in October 2006.www.msnbc.msn.com/id/16370083/