AG sues to block satellite TV merger

Friday, Nov. 1, 2002 | 9:57 a.m.

SUN CAPITAL BUREAU

CARSON CITY -- The state Bureau of Consumer Protection has joined with 22 other states and the U.S. Department of Justice in filing an anti-trust lawsuit to block the merger between the only two nationwide direct satellite television providers.

The Federal Communications Commission announced in October it would deny the application of EchoStar Communications Corp. and Hughes Electronic Corp. to merge.

Deputy Attorney General Marie Martin-Kerr said the two companies could appeal the ruling to an administrative law judge or they could file an amended application with the FCC.

Martin-Kerr said the lawsuit by Nevada and the other states was based on violation of the federal anti-trust laws.

"If allowed to go through, this merger would result in only one player remaining in what has been a diminishing field of satellite TV providers," Attorney General Frankie Sue Del Papa said.

"Most consumers across the country would have their programming options reduced to that of one cable company and one direct broadcast satellite provider, and those who live in areas not served by cable would be at the mercy of the direct satellite monopoly.

The lawsuit was filed in federal court in the District of Columbia.

EchoStar offers service through Dish Network. General Motors Corp. and its wholly owned subsidiary, Hughes Electronics Corp. operates Direct TV Enterprises.