Spotted on: Digital Music News
The XM-Sirius Satellite merger is imminent. Insiders are saying the Department of Justice will approve (and probably this week), followed by the FCC. It doesn’t take a rocket scientist to figure out the competitive advantage here: Consolidate the satellite radio waves completely.
Clear Channel is railing against the “peril” of this merger: “[T]he filing concludes by suggesting that if the FCC approves an XM/Sirius merger, it should also allow Clear Channel to expand beyond its current ownership…of radio stations”.
I want to share a quote with you: “Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony [. . . ]“ That’s the Sherman Anti Trust Act.
I wan unable to find any information that this act has been repealed. Will an XM-Sirius merger monopolize any part of trade or commerce? If so, it’s illegal.
A perfect storm is brewing. XM and Sirius merge, Clear Channel sucks up even more radio stations to be competitive. With only be two companies left serving radio, will this have an affect on advertising and play lists? Will it lead to further erosion of net radio?
You can see a timeline of the FCC filing history here.
Here’s the DOJ’s Antitrust page. No mention of this merger (yet).
My favorite article: Merger Enforcement Is Alive and Well at the Department of Justice
The Bottom Line: An XM-Sirius merger is a monopoly. If Clear Channel is allowed to expand, then there will be only two companies controlling almost all of the airwaves. Whatever happened to diversity?