Washington - Saying the deal "would cause substantial harm to competition and consumers," Sen. Herb Kohl (D-Wisc.), chairman of the Senate's antitrust subcommittee, has urged the Federal Communications Commission (FCC) and Justice Department to block Sirius Satellite Radio's proposed $4 billion acquisition of rival XM.

"Elimination of the head-to-head competition currently offered by XM and Sirius leaving only a monopoly satellite radio service will likely result in higher prices and poorer service being offered to consumers," said Kohl.

"Satellite radio is a unique service for which none of the other audio services is a substitute. Uncertain promises of competition from new technologies tomorrow do not protect consumers from higher prices today."

The deal must win approval from both the FCC and Justice Dept.

Related Links:
http://kohl.senate.gov/~kohl/press/07/03/2007523A15.html

http://news.yahoo.com/s/nm/20070523/tc_nm/xm_sirius_dc_1 (Reuters)