Sidak Releases Supplemental Declaration Criticizing Proposed XM-Sirius Merger

July 9, 2007

Criterion founder J. Gregory Sidak submitted his supplemental declaration on the proposed XM-Sirius merger to the FCC today. In his declaration, Sidak criticizes the proposed merger and counters two economic reports submitted on behalf of XM and Sirius by Professors Thomas W. Hazlett and Dr. Harold Furchtgott-Roth.

In his analysis of the proposed merger, Sidak argues that XM and Sirius fail to carry their burden of proving that the proposed merger would advance the public interest. In addition, Sidak finds that consistent with the theory of rent extraction, the Merger Application and the two economic reports are conspicuously devoid of any antitrust analysis. Sidak finds that the proposed merger would confer upon XM and Sirius the power to charge monopoly prices for SDARS and excuse the two companies from the anticompetitive consequences of that merger on SDARS consumers because the merged company is willing to share a portion of its newly created rent with select political constituencies. Thus, Sidak concludes that because the proposed merger would reduce competition and harm the public interest, the FCC should deny the application for transfer of control.

To view the supplemental declaration, click here.

To view the original declaration from March 16, 2007, click here.