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 12:46:00 PM EST
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.
-
Only if our government spent this much time deciding to get eyeball deep in a thousand year old religious war in a terrorist breeding ground. I dont know what to say. Only 11 months was spent to decide whether Exxon and Mobil could merge into the worlds largest company by revenue($517 billion). Wait now that I think about it I care about sat radio prices more then $3 / gallon gasoline. What a joke 8(
Mike S - 2/24/2008 6:56:00 PM EST -
Who the H _ _ L is the AAI. I doubt that they even understand the Radio business or the market that Sat radio serves. It is not a monopoly if you have alternative sources for no cost. This is a well orchestrated plan by the NAB and Clear Channel to put Sat Radio out of business. Clear Channel is a loser with poor programminfg anbd no good marketing strategy. The only way (un)Clear Channel can survive is to have satellite radio go out of businee
John H - 2/21/2008 9:53:00 PM EST -
