No To Monopolies; No To Sirius/XM Merger

In February 2007, Sirius and XM announced a merger that would create a single satellite radio network in the United States. However, since Sirius and XM are the only satellite networks in the nation, a merger between the two would create a monopoly.

 

I have a long record standing against mass consolidation of media outlets because I believe that the traffic of information must not be held hostage to executives in one or two corporate boardrooms. If that were to happen, we can say goodbye to decisions about content that are based on fairness, balance, localism, diversity, or democratic principle. Instead, we will simply see decisions based solely on a single company’s bottom line.

 

When Sirius and XM were first granted licenses by the Federal Communications Commission (FCC), the FCC stipulated that there had to continue to be more than one licensee in the satellite radio sphere in order to ensure competition. So, the future of the Sirius-XM merger lies with the Department of Justice who will decide whether the merger violates antitrust laws, and with the FCC who will decide whether to waive their original rule regarding satellite licenses.

 

The sanctioning of a marriage between the only competitors in the satellite radio market will create a monopoly that will be devastating for consumers. Without the presence of a similarly-situated, direct competitor, a united Sirius/XM would be free to raise consumer prices, limit choice, and limit the competition of ideas that is the framework of our democratic society.

 

It is the obligation of the Justice Department and the FCC to ensure that robust competition and expanded choice for the American consumer remains. Those principles would be undermined by a merger of Sirius and XM, the only two satellite radio networks in the United States.

 

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