XM-Sirius Merger Constitutes a Monopoly

XM-SIRIUS MERGER CONSTITUTES A MONOPOLY
[SOURCE: Consumer Coalition for Competition in Satellite Radio press release]
Gregory Sidak of Criterion Economics has concluded a study which demonstrates that the proposed merger between XM and Sirius would create a monopoly, constituting a likely violation of the antitrust laws. Sidak, a former Deputy General Counsel for the FCC, was asked by the Consumer Coalition for Competition in Satellite Radio to determine whether subscription-based satellite digital audio radio services ("SDARS") are a relevant product market for antitrust purposes, and to assess the unilateral pricing effects of the proposed merger in the relevant product market. Sidak finds that 1) SDARS are a distinct antitrust product market; 2) The proposed merge would be anti-competitive as (i) it constitutes a monopoly under the most reasonable market definition and (ii) even under a more expansive market definition the proposed merger would increase seller concentration ratios to unacceptably high levels; 3) The majority of efficiencies identified by XM and Sirius would not benefit consumers; and 4) The conditions offered by XM and Sirius would not preserve consumer welfare.
http://www.contentagenda.com/articleXml/LN591301420.html?nid=3039

* Consumer Coalition for Competition in Satellite Radio
http://www.c3sr.org/index.asp