Media regulator Ofcom found that Al-Alamia TV - aired in Arabic and English - had committed numerous broadcasting offenses during Miss Arab London in October 2011.
These included unfair voting competitions, unauthorised product placement, and undue prominence for partner businesses.
Miss Arab London was aired over four dates in 2011 on Al-Alamia TV, the channel that was broadcast on satellite in Europe and the Middle East, as well as online.
During the live final on October 29, 2011, the programme invited viewers to vote for their favourite contestants via a premium rate text message, costing £1.50 per vote plus the standard network charge.
But as a result of a "number of errors" by Al-Alamia TV in relation to management of the voting system, Ofcom found that "viewers had been materially misled and the vote had not been conducted fairly".
Before the final, pageant contestants were featured in three pre-recorded programmes, including segments where they visited businesses, who were credited as on-air sponsors.
Ofcom considered that these sequences had been "purposefully designed to promote the businesses".
The regulator said that the product placement logo was never broadcast during any of the programmes, and so the audience was not made away of the references to sponsor companies.
The channel was also found to have given "undue prominence" to two of the businesses in the pre-recorded shows.
Ofcom considered that the breaches were so serious that they required a financial penalty of £30,000 to be imposed on Biditis Limited, which held the licence for Al-Alamia TV.
The channel has since ceased operations both on satellite and online.