The impending merger between US satellite radio companies XM and Sirius will create a monopoly which would potentially violate US antitrust regulations, according to a recent report.
The independent study by Criterion Economics claims to offer “concrete evidence and analysis to some of the most important questions that have plagued lawmakers since the merger was announced earlier this year.” The full report has been sent to the Federal Communications Commission and the Department of Justice.
The study took into account competition from other audio products such as MP3 players and internet radio as well as AM, FM and HD radio, and determined that satellite radio is a distinct product market for antitrust analysis.
Separately, the Alabama House of Representatives has passed a unanimous joint resolution which opposes the merger and the state hopes other state governments will introduce similar resolutions. The legislation will now go before the Alabama Senate.
The merger was announced in February (see US Satellite Radio Companies To Merge), which would create a company valued at $13 billion.
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