Ashcroft, NAB Say XM/Sirius Deal Would Decrease Competition

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ASHCROFT SAYS XM/SIRIUS DEAL WOULD DECREASE COMPETITION
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Former Attorney General John Ashcroft has sent a letter to his successor, Attorney General Alberto Gonzales, saying he thinks that terrestrial radio should not be considered a direct competitor in the satellite radio market for purposes of a Justice Department review. Ashcroft has been hired to represent the interests of the National Association of Broadcasters.
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* XM-Sirius Merger? NAB Won't Hear of It
[Commentary] NAB President David Rehr makes 5 points: 1) The national satellite-radio market currently is a two-company duopoly trying to become a government-sanctioned monopoly. 2) Such a monopoly would violate FCC rules and precedent, congressional policy and antitrust principles. 3) This government-sanctioned monopoly would undermine audio-content competition, not enhance it. 4) XM and Sirius have a pattern of violating their FCC licenses and cannot be trusted with monopoly power. 5) By their own admission, this merger is not necessary for their survival.
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