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United States

+ - FCC nixes satellite radio merger

Submitted by
a_nonamiss
a_nonamiss writes "Doesn't look like Sirius and XM are going to merge any time soon.
From the article:
Federal Communications Commission Chairman Kevin Martin told reporters after an FCC meeting that the Commission would not approve a merger between satellite radio rivals Sirius and XM Radio.

Even if the FCC were to have a change of heart and green-light a merger between Sirius and XM Radio, it would still have to pass antitrust scrutiny by the Department of Justice. Although a combination of the two radio companies wouldn't have the same effect that it would in the TV market, where satellite is the only alternative for some US residents, it would still have the effect of eliminating competition — something that rarely benefits consumers.
I'm not sure how I feel about this one. Wogically, I know that competition is a good thing for consumers, and monopolies are generally only good for companies. Still, something in my gut tells me that a merger between these two companies would benefit the consumer. I don't like having to choose a car based on which satellite radio service comes preinstalled, or considering whether I'd rather have Howard Stern or Oprah, because there is no practical way to get both. Frankly, it's probably all this exclusivity that has caused me not to purchase either system."

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