Most Popular Articles
C3SR Study: XM-Sirius Merger Constitutes a Monopoly
Washington - Mar 29, 2007 - On March 28, 2007, The Consumer Coalition for Competition in Satellite Radio (C3SR) sent a study to the FCC and the Department of Justice that demonstrates the proposed merger between XM and Sirius would create a monopoly and would therefore violate antitrust laws. The C3SR is a group dedicated to protecting the interests of the more than 14 million satellite radio subscribers in the United States.
The study was conducted by J. Gregory Sidak of Criterion Economics at the request of the C3SR. The study analyzes the likely competitive effect of the proposed merger. Sidak, a former Deputy General Counsel for the FCC, was asked to determine whether subscription-based satellite digital audio radio services are a relevant product market for antitrust purposes, and to assess the unilateral pricing effects of the proposed merger in the relevant product market.
One issue concerning the proposed merger is that satellite radio sees itself as part of the overall electronic media landscape that competes with terrestrial and Internet radio. The C3SR obviously disagrees. The NAB also states that the satellite radio merger would create a monopoly.
The study concludes that satellite radio services are a distinct antitrust product market and that a merger would be anti-competitive because it constitutes a monopoly. Even under broader definitions of monopoly, the report concludes that a merger would increase seller concentration ratios to unacceptably high levels.
In the end, the study says that a merger would result in efficiencies for XM and Sirius that would not benefit consumers, and that the conditions offered by XM and Sirius would not preserve consumer welfare. The study considered competition from other audio products, such as MP3 players and Internet radio, and determined that satellite radio is a distinct product market for antitrust analysis.
The study is available at the C3SR website at this link.
The C3SR was created by a group of law students at George Washington University in Washington, DC.
Acceptable Use Policy blog comments powered by Disqus
[an error occurred while processing this directive]
Today in Radio History
The history of radio broadcasting extends beyond the work of a few famous inventors.
EAS Information More on EAS
The feed provides feeds for all US states and territories.
Need a calendar for your computer desktop? Use one of ours.
Information from manufacturers and associations about industry news, products, technology and business announcements.
Browse Back Issues[an error occurred while processing this directive]
Also in the January Issue
- Trends in Technology: AES-X210, The "Missing Piece" of AES67?
- FCC Proposes Online Publc File Rules for Radio
- RF Engineering: Licensing AM Stations Using Method of Moments
- Field Report: Zoom H6