Kohl: FCC Should Block XM-Sirius Merger
Senate Antitrust Subcommittee Chairman Rips Department of Justice's Decision Not to Challenge Satellite-Radio Combination
By John Eggerton -- Broadcasting & Cable, 3/24/2008 1:44:00 PM
The chairman of the Senate Antitrust Subcommittee told the Federal Communications Commission it should not allow XM Satellite Radio and Sirius Satellite Radio to merge, saying that it would create a satellite-radio monopoly.
That came in the wake of the Department of Justice's decision not to challenge the merger or put any conditions on it. The FCC has still to weigh in, with chairman Kevin Martin saying recently that he wanted to do so by the end of this month.
Speaking as chairman of the committee, Sen. Herb Kohl (D-Wis.) said in a statement: “We believe the elimination of competition between XM and Sirius is contrary to antitrust law and the interests of consumers. We urge that the FCC find the merger contrary to the public interest and exercise its authority to block it."
Saying that he was disappointed with the DOJ's decision, he went even further, adding: "We are particularly disturbed by this decision given the Justice Department's record in recent years of failing to oppose numerous mergers that reduced competition in key industries, resulting in the Justice Department not bringing a single contested merger case in nearly four years."
DOJ assistant attorney general Thomas Barnett took issue with the senator's characterization.
"The antitrust division has been very vigilant in enforcing the antitrust laws," he told reporters Monday. "Just this year, we had 10 mergers that we have challenged … I am quite comfortable that we are vigorously but appropriately enforcing the antitrust laws with respect to mergers."
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This douchebag is obviously in Clear Channels pocket. How much did clear channel pay this idiot.
Joe - 5/1/2008 3:24:00 PM EDT -
Give these senaters enough money and they would support smoking crack on the street.
Jeff - 4/21/2008 11:52:00 AM EDT -
As stated above this isn't a monopoly. SAT radio has to compete with radio that is free. People are not forced to pay the subscription fees. It is a choice and a luxury to have.
People will pay for it if they want it. I know I will pay for one reason alone and that is because I don't want to listen to commercials. My $15 a month is worth it. Even if it were to go to $20 a month I'd still pay. It's my choice and I am not forced to do it.
I just don't understand how such a big deal is being made about this. This is a service we pay for if people don't like it then don't pay for it and listen to TER radio.
Trevor - 4/18/2008 4:49:00 PM EDT -
Joey...Couldn't agree more.
This is not a monopoly the opposition is completely driven by those who will now have a little competition namely Clear Channel with their Lobby group the NAB. Even our own House Rep John Conyers is a opposed but is completly out of touch with the ways of Michigan and Detroit needs anyway. He doesn't understand that this move may actually benefit his own auto industry. I'm an engineer in the automotive industry and Detroit certainly hasn't been protected by our government with competition from overseas, so why should terrestrial radio get that privilege. SAT radio is here to stay. I would suggest to Clear Channel and CBS rather than fight it - maybe buy it. Where were these companies at the inception of SAT radio? Someone took a risk and someone should be rewarded for their risk. SAT radio is a niche and will certainly not kill or replace terrestrial radio. It just makes the playing field more interesting and benefits the consumer.
Kurt - 4/18/2008 8:03:00 AM EDT -
Let the satelite radio companies merge. It is far from a Monopoly. You have regular radio, HD Radio, IPOD , MP3 players, silence. IN this down economy let the consumers decide. A lot of people want the money in my pocket. Take the Oil companies. Were were the politicians when Exxon/Mobile merged? 40 BILLION in profit and that merger was past in a few short months. This merger has been examined for 1 year!
Joey Lankimana - 3/24/2008 9:45:00 PM EDT
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