  A direct observation of the giant Zeeman splitting of the free excitons in
(Ga,Fe)N is reported. The magnetooptical and magnetization data imply the
ferromagnetic sign and a reduced magnitude of the effective p-d exchange energy
governing the interaction between Fe^{3+} ions and holes in GaN, N_0 beta^(app)
= +0.5 +/- 0.2 eV. This finding corroborates the recent suggestion that the
strong p-d hybridization specific to nitrides and oxides leads to significant
renormalization of the valence band exchange splitting.
