Auction 109 Bidders Warned on Prohibited Communications
Two companies participating in an FCC auction of FM construction permits could face consequences over prohibited communications, said letters from the FCC Office of Economics and Analytics in Tuesday's Daily Digest to Upbeat Frequency and Max Frequency. A July 19…
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meeting between principals of the two companies to discuss a possible deal to have better bidding eligibility in Auction 109 appears to violate rules on prohibited communications, the nearly identical letters said. The companies disclosed, and though they argued they didn’t discuss bidding strategies, their discussion must have implicated them, the letters said. The companies remain qualified bidders, but “further participation in Auction 109 by you could exacerbate this violation and may increase the likelihood and severity of possible sanctions,” staff said. “We are unable to fully investigate the facts underlying your report prior to the start of bidding, and will refer this apparent violation to the Commission’s Enforcement Bureau for further investigation.” The companies didn’t comment.