iHeartMedia 2001 Annual Report Download - page 25

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25
Antitrust Regulations May Limit Our Acquisition Strategy
Additional acquisitions by us of radio and television stations, outdoor advertising properties and
live entertainment operations or entities may require antitrust review by federal antitrust agencies and
may require review by foreign antitrust agencies under the antitrust laws of foreign jurisdictions. We can
give no assurances that the Department of Justice or the Federal Trade Commission or foreign antitrust
agencies will not seek to bar us from acquiring additional radio or television stations, outdoor advertising
or entertainment properties in any market where we already have a significant position. Following
passage of the Telecommunications Act of 1996, the DOJ has become more aggressive in reviewing
proposed acquisitions of radio stations, particularly in instances where the proposed acquiror already
owns one or more radio station properties in a particular market and seeks to acquire another radio
station in the same market. The DOJ has, in some cases, obtained consent decrees requiring radio station
divestitures in a particular market based on allegations that acquisitions would lead to unacceptable
concentration levels. The DOJ also actively reviews proposed acquisitions of outdoor advertising
properties. In addition, the antitrust laws of foreign jurisdictions will apply in we acquire international
broadcasting properties.
Environmental, Health, Safety and Land Use Laws and Regulations May Limit or Restrict Some of Our
Operations
As the owner or operator of various real properties and facilities, especially in our outdoor
advertising and live entertainment venue operations, we must comply with various foreign, federal, state
and local environmental, health, safety and land use laws and regulations. We and our properties are
subject to such laws and regulations relating to the use, storage, disposal, emission and release of
hazardous and non-hazardous substances and employee health and safety, as well as zoning and noise
level restrictions which may affect, among other things, the hours of operations of our live entertainment
venues. Historically, we have not incurred significant expenditures to comply with these laws.
However, additional laws which may be passed in the future, or a finding of a violation of or liability
under existing laws, could require us to make significant expenditures and otherwise limit or restrict
some of our operations.
Government Regulation of Outdoor Advertising May Restrict Our Outdoor Advertising Operations
The outdoor advertising industry is subject to extensive governmental regulation at the federal,
state and local level. These regulations include restrictions on the construction, repair, upgrading, height,
size and location of and, in some instances, content of advertising copy being displayed on outdoor
advertising structures. In addition, the outdoor advertising industry is subject to certain foreign
governmental regulation. Compliance with existing and future regulations could have a significant
financial impact on us.
Federal law, principally the Highway Beautification Act of 1965, requires, as a condition to
federal highway assistance, states to implement legislation to restrict billboards located within 660 feet
of, or visible from, highways except in commercial or industrial areas and requires certain additional
size, spacing and other limitations. Every state has implemented regulations at least as restrictive as the
Highway Beautification Act, including a ban on the construction of new billboards along federally-aided
highways and the removal of any illegal signs on these highways at the owner’s expense and without any
compensation. Federal law does not require removal of existing lawful billboards, but does require
payment of compensation if a state or political subdivision compels the removal of a lawful billboard
along a federally aided primary or interstate highway. State governments have purchased and removed