American Antitrust Institute to DOJ: Block XM-Sirius
Nonprofit Group Urges Department of Justice to File Suit vs. XM Satellite Radio-Sirius Satellite Radio Merger
By John Eggerton -- Broadcasting & Cable, 2/19/2008 10:46:00 AM MT
The American Antitrust Institute, a nonprofit that advocates an aggressive stance toward antitrust enforcement, recommended that the Department of Justice file suit against the proposed XM Satellite Radio-Sirius Satellite Radio merger.
Justice is currently considering whether or not to approve the deal, with the definition of the satellite-radio market a key component.
AAI argued that satellite radio, not generally downloadable audio in its many forms, is the relevant market and that allowing the only two satellite-radio companies operating in that market to merge would create a monopoly, the group said in a release Tuesday.
The group added that Justice has a "duty" to try to block the merger, saying that while it doesn't think the merger call is a close one, "if the DOJ considers this to be a close question [there have been reports of divisions within Justice over whether or not to approve], the congressional intent and strong precedent require that the division make the decision in favor of avoiding the creation of what seems likely to be a monopoly."
Broadcasters have been pushing hard against the merger, arguing that satellite radio competes with them for local ad dollars but they cannot compete with it as a national service. The combination would be an unfair "merger to monopoly," they argued.
Sirius and XM have countered that the market is the broader audio-delivery universe that includes satellite and cable radio, the Internet radio and iPods, as well as terrestrial radio, and that the merger would be good for consumers and provide a stronger competitor in that audio market.
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Only if our government spent this much time deciding to get eyeball deep in a thousand year old...
Mike S - 2008-24-2 16:56:00 -
Who the H _ _ L is the AAI. I doubt that they even understand the Radio business or the market...
John H - 2008-21-2 19:53:00 -
Might there possibly be a loss of tax revenue if the population moves to satellite vs...
Ed - 2008-21-2 11:20:00 -
I'm by no means a wise man but i do no BS when i see it. It's like regular radio is chasing...
concerned citizen - 2008-20-2 11:40:00 -
I'm by no means a wise man but i do no BS when i see it. It's like regular radio is chasing...
concerned citizen - 2008-20-2 11:40:00
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