DOJ blesses XM-Sirius merger

In a succinct summation, the DOJ noted that there isn't real competition today between XM and Sirius within several key segments of the public. For example, many consumers' choice of satellite service is dictated by the exclusive deal that the manufacturer of their car struck with XM or Sirius. More important, the Justice Department's Antitrust Division found that satellite radio doesn't constitute a distinct market. XM and Sirius are just two of many competitors in the market for audio entertainment -- think terrestrial radio, MP3 players, podcasts and even online stations powered by wireless broadband. Although opponents argue that the deal would create a monopoly, the DOJ said that it would be a monopoly without teeth:

In the retail channel, where the parties likely would continue to compete to attract new subscribers absent the merger, the Division found that the evidence did not support defining a market limited to the two satellite radio firms that would exclude various alternative sources for audio entertainment, and similarly did not establish that the combined firm could profitably sustain an increased price to satellite radio consumers.

That's good news for the companies' merger plans, but not for their long-term survival. Then again, XM and Sirius haven't made their long-term prospects an issue for regulators, at least not officially. They're publicly traded companies, after all. They can hardly tell Wall Street to buy their stock while also telling Washington that they're doomed to fail without a merger.