Century Radio was "too highly politicised" and held almost daily consultations with the former minister for communications, Mr Ray Burke, the tribunal heard.
Mr Sean Connolly, secretary of the Independent Radio and Television Commission in 1989, told Mr Michael Laffan, chief executive of Century Radio, during a meeting that Century felt empowered to enlist the support of ministers "whenever and wherever they chose".
A document written by Mr Laffan to record details of the meeting in September 1989 also said: "Mr Connolly stated the promoters of Century were too highly politicised."
The document referred to "the almost daily consultation with the minister on matters which should have rightly belonged to discussions and negotiations between Century, the IRTC and RTE.
"There was a high degree of suspicion with regard to the motives behind the actions of the promoters of Century Radio," Mr Laffan wrote.
Mr James Stafford, former director of Century Radio, denied he was involved at such a level of politics. "For my part I am not that political a person and wouldn't describe myself as politicised," he said.
The document reflected "a lot of bad blood" between Century Radio and the IRTC and in particular Mr Oliver Barry, former director of Century Radio, and Mr Connolly.
"I think this is about somebody suffering from a bit of a wounded ego," Mr Stafford said. "I think it's a bit emotional."
He said Mr Connolly's reference to the "high degree of suspicion with regard to the motives behind the actions of the promoters of Century Radio" probably referred to the negotiations over the transmission charges of the radio station.
Mr Stafford also said Mr Connolly overstated the level of consultation between Century Radio and Mr Burke. "I'm not arguing about the consultation, I'm arguing that he overstated it here," he said.
Mr Stafford said Century Radio held equally strong views about the IRTC. "I don't think it does either of them any good the way they handled it," he said.
The tribunal also heard Mr Ray Burke told civil servants from the Department of Communications during a meeting with Century Radio to cap RTE's advertising revenue.
Century Radio told the Minister during the meeting held on December 19th, 1989, it was having financial difficulties.
Mr Pat Hanratty SC, for the tribunal, asked Mr Stafford if after Century Radio outlined its financial difficulties to the minister he told his civil servants "to take whatever steps necessary to cap RTE's advertising".
"That would seem to be what happened," Mr Stafford said.
Mr Stafford said RTE had abused its dominant position in the market by having both a licence fee and an advertising revenue. "There is a prima facie case that dual funding is fundamentally against European law," he said.