In a post last June, I noted that the FCC had — after 78 days – finally begun it’s 180 day “shotclock” for ruling on the Sirius-XM merger. The piece concluded by noting that the FCC had 176 more days to make a decision, “unless it decides to stop the clock again.”
I meant that as sarcasm, but now comes news that opponents of the merger are asking for just such a pause. The National Association of Broadcasters this week asked the FCC to formally toll its 180-day timetable for reviewing the merger, in order to allow NAB to review documents being released to it pursuant to a FOIA request. What are these new documents? Formerly unknown studies on the consumer effects of the merger? Information on pricing or product quality? Nope. The documents don’t pertain to the effect of the merger on consumers at all, but on whether Sirius or FM have violated FCC technical rules on the “operation of FM modulators/translators and/or terrestrial repeaters.” U.S. Electronics has also asked for a delay, citing a grabbag of reasons, including “monopolistic equipment access, rule violations, interoperable requirements, the handling of ex parte communications, the scheduling of agenda items and (last but not least) delays in access to “decision-makers” (quote from Orbitcast).
What is this? The 1972 Olympic basketball finals? Should the FCC stop the clock every time it looks like one side is going to lose?
The NAB has put much of its credibility at risk in fighting this merger, arguing (implausibly) that Sirius and XM compete with them, yet at the same time have no competition. (This is discussed more fully in this recent Heritage Foundation paper). It’s a shame: the broadcasters have some serious arguments to make as to why they should not be regulated — arguments that are undermined by the stance they are taking in regard to XM and Sirius.
It may be too late to save the NAB’s credibility, but the FCC — by rejecting the requests — can perhaps save some of its own.
Stay tuned.
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