Sirius and XM go to Washington

Both the Sirius and XM satellite radio companies have gone to Washington to try and sell their merger the NY times reports.

No doubt, we'll be seeing more of this lobbying as the antitrust storm starts to gather. And, as market definition is often the main issue in antitrust cases, look for lobbying about what constitutes the satellite radio market.

In short, the fundamental question is this: is satellite radio a singular market that doesn't compete with terrestrial radio? If satellite radio constitutes its own market, then the merger will undoubtedly create a monopoly. After all, there'll be only one company selling satellite radio services. However, if it is determined that satellite radio competes with terrestrial radio, then it is less likely that the merger will result in a monopoly.

The companies won't hinge their entire argument on market definition. They'll be discussing other factors too. They'll argue that the merger is necessary to ensure the success of each company and advancements in the technology. They may also argue that by merging they are providing enhanced services to the consumers; minimizing their uncertainty about which product to buy. However, these tend to be issues that courts don't care about. The tendency is to let the market take care of those issues.