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DOJ Gives Green Light to Satellite Radio Merger - FCC Needs to Stop it

The Next Big Media Monopoly

Yesterday, the Department of Justice gave their approval for Sirius Satellite Radio Inc.'s proposed $5 billion buyout of rival XM Satellite Radio Holdings Inc., saying the deal was unlikely to lessen competition or harm consumers.

The transaction was approved without conditions.

We strenuously object to the proposed merger between XM and Sirius satellite radio. Approval of this merger would not only create an unfair monopoly, but could also spark a tidal wave of consolidation among media companies that would leave citizens' informational needs behind. Common Cause, and its 300,000 members and supporters, urges the FCC to put a halt to this merger or at the very least establish conditions to protect consumers now that the Justice Department has dropped the ball.

XM and Sirius received licenses to use the publicly-owned airwaves on the condition that the two companies would not merge. The FCC was presumably concerned then about the hazards of a monopoly in satellite radio service. That concern should be even greater today in the face of increased media consolidation in television, radio and newspapers.

The FCC must ask hard questions - and demand comprehensive answers - as to why the only two national satellite radio companies should be allowed to become one. This merger is about more than what price consumers will be charged for satellite radio, although that is an area that should be examined.

XM and Sirius must also explain how this merger will serve the public interest.

Will there be more diversity and more viewpoints aired?

Will programming that serves the educational and informational needs of both children and adults be promoted?

Will channels be set aside for public service?

Can citizens trust any promises of public interest programming made by the merged companies, given that XM and Sirius have broken other promises to consumers, such as development of interoperable radios?

Speak out at http://www.commoncause.org/StopXMSiriusMerger

General News :: Entry Link :: 10 Comments
Tags: media and democracy, media consolidation, media ownership, FCC, Department of Justice, XM, Sirius, radio (all tags)


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