WASHINGTON -- May 28, 2008: In an ex parte filing with the FCC, the Consumer Coalition for Competition in Satellite Radio has asked the commission to hold hearings on the proposed merger of XM Satellite Radio and Sirius Satellite Radio because new documents submitted by Sirius on April 10 "cast the proposed merger in a very negative light and call into question the truthfulness and candor of both Sirius and XM with respect to their dealings with the commission as licensees and during this proceeding."
The public version of the filing is heavily redacted, but the "highly confidential documents" C3SR is concerned with appear to have to do with the FCC requirement that XM and Sirius design interoperable receivers, a requirement the satcasters have never fulfilled.
The group says that "full and fair marketplace competition, as originally intended by the commission, has never occurred because of the conduct of Sirius and XM" and asks for a hearing because the confidential documents raise questions about Sirius' and XM's lack of candor and about whether the proposed merger "furthers an illegal conspiracy to restrain trade."
C3SR also says the "apparent lack of candor" is not the only basis for an FCC investigation, citing what it calls XM's and Sirius' "proclivity to violate the commission's rules, complying with the rules subjectively only when such compliance will not jeopardize their business objectives."
