KXMZ (102.7 FM, "Hits 102.7") is a radio station serving the city of Rapid City, South Dakota and owned by Houston Haugo, through licensee Haugo Broadcasting, Licensed to Box Elder, South Dakota, the station broadcasts a hot adult contemporary format.
At the same time, Pandora also announced that it was filing a motion in a federal district court claiming that ASCAP was violating an antitrust consent decree issued by the Department of Justice.
[4][5] The move was criticized by David Israelite, CEO of the National Music Publishers Association, who declared that Pandora was now "at war with songwriters," and had lost its credibility because it was resorting to "lawsuits and gimmicks" to make its point.
[8] However, ASCAP filed a petition to deny the acquisition, arguing that the acquisition would not serve KXMZ's public service obligations because of Pandora's intent for the station as a "bargaining chip" for royalty payments, and also alleged that Pandora did not provide enough information about its ownership structure to prove that less than 25% of the company was owned by foreign interests.
On January 14, 2014, the FCC said it was no longer processing the application, ruling that Pandora failed to "demonstrate adequate support for its foreign ownership compliance certification.