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The XM-Sirius merger took another hit Thursday when two top House Democrats urged the FCC to impose consumer protection standards on the deal if the commission chooses to approve it.

"It is essential that, if the FCC approves this merger, it ensures there are appropriate safeguards in place to protect consumers," chairman John Dingell of Michigan, said in a statement.

"It should allow any manufacturer to offer devices that are compatible with the newly-formed company's satellite radio service," Dingell continued. "Just as consumers should be permitted to bring non-harmful compatible devices to wireless networks, they should have the opportunity to bring their choice of devices to the service of the newly-formed company created by this merger."

"As the FCC evaluates the proposed XM-Sirius merger, they must remember their mandate to consider consumer welfare and protect the public interest," said Rep. Edward Markey, chairman of the Internet and telecom subcommittee.

XM and Sirius announced in February 2007 that they would merge in a stock swap worth $13 billion, including net debt of $1.6 billion.

The Department of Justice approved the XM-Sirius merger in March ruling that the combined company will not substantially lessen competition or harm consumers, but the deal must now be approved by the FCC.

Dingell and Markey also asked the FCC to make sure XM and Sirius adhere to the price constraints they have already submitted to the commission.

Sen. Byron Dorgan, a North Dakota Democrat and a member of the Senate Commerce Committee, urged the FCC last month to block the deal entirely. The DOJ decision was illogical, and a combined XM-Sirius would be contrary to the public interest, Dorgan wrote in a letter to the FCC.

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Posted by: John
May 24, 2008 12:08 AM

I think this is just a case of the political machine being funded by the traditional broadcast companies and their association. If you look at how long this has taken versus the mega mergers of other media compnanies (i.e. Time Warner/AOL, etc.) and the oil and airline companies, which impact our lives in a much more meaningful way.


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