C3SR Raises Questions About the Integrity of the FCC'S Decision-Making Process

C3SR Raises Questions About the Integrity of the FCC'S Decision-Making Process

WASHINGTON, June 16 /PRNewswire-USNewswire/ -- It is reported that the Chairman of the Federal Communications Commission ("FCC") decided yesterday to approve the proposed Sirius/XM merger with a very minimal package of concessions. All that is needed for final approval of this merger by the FCC are two "yes" votes by other FCC Commissioners. The details of the concessions offered by Sirius and XM remain a mystery.

This untimely announcement follows the discovery of serious legal issues raised by certain highly confidential documents that Sirius submitted to the FCC on April 10, 2008, which remain unresolved. Sirius produced these materials subject to an FCC protective order to prevent public disclosure of the documents' contents. In a May 27, 2008 letter to the FCC, the Consumer Coalition for Competition in Satellite Radio ("C3SR") identified several issues raised by the highly confidential documents and asked that the FCC designate the proposed merger of XM and Sirius for hearing. C3SR also requested an FCC investigation leading to appropriate enforcement actions. In addition, Senator Brownback has called for an inquiry into this matter by the Senate Judiciary Committee. No action has been taken by the FCC.

According to Julian L. Shepard of Williams Mullen, counsel to C3SR, "The entire FCC process is now unreasonably shrouded in secrecy. Sirius and XM are trading on the secrecy of the highly confidential documents in the court of public opinion. They have refused to come forth with the facts. In public, Sirius and XM are denying the facts in the highly confidential documents, but they have not submitted any evidence to support their denial. Meanwhile, Sirius and XM are saying what they wish in private ex parte meetings with the FCC."

Under the FCC's rules, these private ex parte meetings are permitted but must be followed by a public written disclosure of the substance of the meetings. C3SR believes that Sirius and XM have failed to make the requisite substantive public written disclosures for meetings that took place on May 30th, June 4th, 6th, and 9th. Such failures violate the due process rights of the many opponents of this merger in the FCC's merger proceeding.

C3SR maintains that the FCC has been misled by Sirius and XM with regard to interoperable receivers, and the highly confidential documents referenced in C3SR's recent filings reveal serious violations of the antitrust laws. If Sirius and XM disagree, they should come forward with evidence and make public the highly confidential documents.

Today, C3SR filed a further submission to the FCC underscoring the urgency for a hearing on the issues. A redacted copy is available at http://www.c3sr.org/mergerfilings.asp.

The redactions are required to comply with the FCC's protective order.

First Call Analyst:
FCMN Contact:

Source: CONSUMER COALITION FOR COMPETITION IN SATELLITE RADIO (C3SR)

CONTACT: C3SR, +1-202.558.7024, info@c3sr.org

-------
Profile: intent