XM-Sirius Deal Under Fire

WASHINGTON Consumer groups renewed their attack on the proposed merger of the nation’s two satellite radio companies, telling federal regulators the union would eliminate competition and hurt American consumers.

The Consumer Federation of America, the Consumers Union and Free Press argued in a report filed Monday with the Federal Communications Commission that the $5 billion deal would reduce the number of channels and formats available and result in little cost savings.

“The companies fail to make the case for ending the explicit prohibition on mergers between satellite licensees,” said Consumers Union vp Gene Kimmelman.