In July 2008, the Federal Communications Commission approved the merger of satellite radio providers XM Satellite and Sirius Satellite Radio, establishing a single satellite radio company in America. Under the terms of the deal, the companies agreed not to raise prices for the next three years. Why would the FTC require prices not to increase for three years?

Question

Quizplus · Accepted Answer

Monopolies tend to restrict output and charge higher prices compared to competitive markets, so the FTC required a price freeze to protect consumers from potential price hikes due to reduced competition.

In July 2008, the Federal Communications Commission Approved the Merger