The fine assessed by the Federal Communications Commission against CBS is the largest-ever for Janet Jackson's "wardrobe malfunction”, the largest ever against a television network.
The incident seen by 90 million viewers generated a record number of complaints to the FCC. The incident resulted in the singer's breast being briefly exposed.
Since then, the House and Senate voted for tougher fines and stepped-up penalties, but the legislation has not been given final approval.
CBS said it was extremely disappointed with the decision.
Mississippi Cong. Chip Pickering said the FCC acted correctly by imposing the fine.