In a filing with the FCC, the consumer groups said XM and Sirius are asking the FCC to define the satellite radio market very broadly to include the iPod, Internet radio and other forms of communications — creating an illusion of a market with more competition than actually exists. The satellite radio competitors are hiding the anti-competitive and anti-consumer effects of the merger, the consumer groups said.
"Approval of a merger based on an overly broad definition of the market is likely to result in rising prices, denial of choice, declining quality and slowing innovations,” said Mark Cooper, director of research for the Consumer Federation of America.
"The merger of XM and Sirius satellite radio can only be called one thing — a monopoly — leaving no choice or competition in the satellite market,” said Gene Kimmelman, vice president of Federal and International Affairs for Consumers Union.
From Wire Reports