Task force to hold XM-Sirius merger hearing

WASHINGTON (Reuters) - A new Congressional antitrust task force will hold a hearing next week on the proposed merger of radio subscription companies, XM Satellite XMSR.O and Sirius Satellite (SIRI.O), House Judiciary Committee Chairman John Conyers said on Wednesday.

Mel Karmazin, chief executive of Sirius, will testify at the February 28 hearing, Conyers said in a statement.

Sirius's planned takeover of XM must be approved by the U.S. Justice Department and Federal Communications Commission who review mergers for their impact on competition and customer service.

The two companies contend that the deal won't hurt consumers because satellite radio, which charges a subscription fee, faces competition from terrestrial radio, wireless music devices and podcasts.

"Digital music is at the cutting edge of technology and innovation," said Conyers, a Michigan Democrat. "We are holding this hearing to allow members to probe whether this merger will enhance or diminish competition in the digital music distribution industry."

Rep. Lamar Smith of Texas, the top Republican member of the committee, said the hearing will focus on the proposed merger's impact on consumers.

"This hearing will help determine whether customers will get higher or lower prices and more or fewer programming options with the proposed merger. In particular, the Committee will examine whether satellite radio competes against terrestrial radio, the Internet, or other emerging technologies," Smith said.

Conyers, who became chairman of the House Judiciary Committee after Democrats took control of Congress in the last election, said he is creating the bipartisan antitrust task force within the committee to focus on antitrust and competition policy issues. It will have a limited term and operate only through the end of August, he said.

Some consumer groups have criticized the Bush administration for being too eager to approve corporate mergers during the past six years.