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CONTACT: Tori Katz
July 9 , 2007
(410) 466-0049
Complexity of Market, Platforms Must be Considered in Antitrust Review of
XM-Sirius Merger

In Filing, Progress & Freedom Foundation's Scott Wallsten Writes That Officials Should Consider Not Only Subscribers, but also Content Providers and Competing Platforms

WASHINGTON D.C. - July 9, 2007 - The Progress & Freedom Foundation's (PFF) Scott Wallsten today filed comments regarding the proposed XM-Sirius merger at the Federal Communications Commission (FCC). Wallsten, PFF Senior Fellow and Director of Communications Policy Studies, explains that this merger poses unique new challenges for antitrust officials.

Specifically, companies like Sirius and XM are platforms in two-sided markets that must attract subscribers and content providers, both of whom can choose among a variety of platforms. In addition, the platforms themselves are dynamic in that they could potentially carry any digital information, not just the services they currently offer.

"A merger analysis of competing platforms that considers only a single component in this complex market is likely to reach an incorrect conclusion," said Wallsten, Senior Fellow and Director of Communications Policy Studies. "In the case of the XM-Sirius merger, officials should consider not only subscribers, but also content providers, competing platforms, platforms that are potential competitors, and services the platforms in question may provide in the future that they do not today."

The filing will be available at the PFF website here.

The Progress & Freedom Foundation is a market-oriented think tank that studies the digital revolution and its implications for public policy. It is a 501(c)(3) research & educational organization.



The Progress & Freedom Foundation