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Antitrust Group Urges DOJ to Oppose XM/Sirius

The American Antitrust Institute pushed the Justice Department to block the satellite radio merger.

The American Antitrust Institute pushed the Justice Department to block the satellite radio merger.

The AAI describes itself as a non-profit, education, research and advocacy organization that promotes competition for the interests of consumers.

It urged the DOJ to file suit against the satellite radio companies “in order to prevent a monopoly in the satellite radio market and thus causing harm to consumers and other firms,” the group said in a letter.

Satellite radio alone is a relevant market; no other audio sources, including AM/FM radio, offer the nationwide coverage of satellite radio, content, features and the ability to aggregate demand, AAI said.

“There is substantial evidence that the merger would result in higher long-term prices, short-run increases in commercial time, less innovation and reduced program choice for consumers,” the group stated.

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