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FCC Hears Comments on Sirius-XM Merger

Published on July 10, 2007 | Email this article

The FCC heard opponents and supporters of the proposed XM-Sirius merger yesterday, but little new ground was broken, according to The Hollywood Reporter.

Perhaps the most critical question surrounding the issue is how the FCC will define the market. If the commission agrees with the satellite companies that the market encompasses not only satellite radio but also internet and terrestrial radio, the approval will likely be easier. However, if the FCC decides the market is strictly satellite radio, a merger will likely be more difficult to gain approval.

In this case, two agencies must approve the mergers: the Justice Department will examine the deal for its effect on the competition, while the FCC will decide if it is in the public’s best interest.

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