Groups claim merger of XM, Sirius bad deal

Published: July 10, 2007

Separate-but-equal serves the public interest, at least in the world of satellite radio programming, a consortium of consumer groups said Monday.

Consumer Federation of America, Consumers Union, Common Cause, and Free Press oppose a merger of XM and Sirius satellite radio operators and have asked the FCC to reject the companies' proposal to define the market to include all forms of one- and two-way communications services.

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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


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