House Antitrust Task Force inquires about merger - Orbitcast

House Antitrust Task Force inquires about merger

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Congressman John Conyers JrHouse Judiciary Antitrust Task Force chairman John Conyers Jr. (D-MI) and ranking member Steve Chabot (R-OH) sent a letter to US Attorney General Alberto Gonzales and FCC Chairman Kevin Martin asking for guidance on the Sirius-XM merger.

In the letter to the FCC and DOJ, Conyers and Chabot asked about the Service Order in the DARS licenses issued a decade ago that prevented the two satcasters from merging. They asked if "circumstances today are similar or different" from the original ruling.

Conyers and Chabot also inquired about the definition of the relevant market, which is the key question when it comes to the antitrust analysis.

"Some witnesses said the market should include local broadcasters, and some claimed the markets for local radio and satellite radio were different because local broadcasters are licensed for specific geographic areas while satellite radio providers have a national service footprint. Please explain what evidence the agency looks for when defining a 'relevant' market as part of its antitrust scrutiny," they wrote in the June 13th letter.

Referencing the failed 2002 DirecTV/EchoStar merger, the letter points to the FCC's finding "that the proposed EchoStar/DirecTV merger was inconsistent with the commission's long-standing policy of not permitting one entity to control all of the spectrum for a particular service." Conyers and Chabot then ask Gonzales and Martin, "Please explain how approval of this merger would be consistent or inconsistent with the finding in the EchoStar/DirecTV order."

While the FCC and DOJ will ultimately decide on the success or failure of the merger, the Congressmen said they would "appreciate" the "consideration" of the many questions presented in the letter.

PDF Read the full letter (PDF)

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6 Comments

the Congressmen said they would "appreciate" the "consideration" of the many questions presented in the letter.

Why?

Congressmen have accepted bribes from the NAB where are the FCC and JOD have not.

You have to love our political system. Well, as long as we have the First and Second ammendment may be you don't. :)

the Congressmen said they would "appreciate" the "consideration" of the many questions presented in the letter.

Why?

Congressmen have accepted bribes from the NAB where are the FCC and JOD have not.

You have to love our political system. Well, as long as we have the First and Second ammendment may be you don't. :)

MR CONYERS!!!

Love that SNL sketch.

You gotta love how much time and money the government is spending to determine the fate of a subscription luxury audio service. God bless politics.

I do like the comments on this link here - the hardcore fans that don't want anything to change can get a good idea of how the average person feels about satellite radio.

http://blogs.wsj.com/deals/2007/06/15/payback-time-for-karmazin/?mod=yahoo_hs

Why is it that we spent millions of tax dollars in an antitrust against ATT in the ealy 80's and now they have put themselves back together and no one has batted an eye? Monopolies exist in this country and the government allows them it just depends on who it is as to whether they put an end to it.

I think that we should be posting on this website a link to put comments to these congressman websites also.. I'm sure that there are constituents of theirs that have responded to comments for this docket item. And while we're at lets post comments on the NAB website also.

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