Consumer Groups Lobby FCC Against Satcaster Merger
May 12, 2008 at 2:23 PM (PT)
The CONSUMER FEDERATION OF AMERICA, CONSUMERS UNION and FREE PRESS are urging the FCC to reject the proposed XM-SIRIUS merger that was signed off by THE DEPT. OF JUSTICE. The groups criticized the DOJ's decision as fundamentally flawed and called on the FCC to effectively kill the merger.
"The JUSTICE DEPT. tossed all tenets of antitrust out the window in its rush to rubber stamp this merger-to-monopoly," CONSUMER FEDERATION OF AMERICA Dir./Research MARK COOPER said. "The FCC should not buy into the flawed reasoning that led to the DOJ's disastrous decision. Consumers are depending on the commission to stop this dangerous deal dead in its tracks."
THE JUSTICE DEPARTMENT based its merger approval on the conclusion that satellite radio is part of a larger audio market. However, consumer groups -- using the FCC's own data on radio stations -- have shown that satellite radio and terrestrial radio are not close substitutes. The groups argue that satellite radio represents a unique consumer product, showing that it does not compete with iTUNES, Internet radio or terrestrial radio.
Read the consumer groups' FCC filing here.