In its opening argument on Monday, the Competition Bureau reiterated its position that the planned sale of Shaw-owned wireless communications company Freedom Mobile to Videotron Ltd. of Quebecor Inc. not enough to allay its concerns that the broader merger would lead to worse service and higher prices for consumers. The regulator says that separating Freedom from Shaw would make it a diminished competitor because it would take away Freedom’s access to certain shared human resources and synergies that the company “has enjoyed” as part of Shaw. He says the divestment will not replace the “dynamic” competitive presence Shaw offers. WATCHES | Ottawa bars Rogers from buying Shaw’s wireless business:
Ottawa rejects part of proposed Rogers-Shaw merger deal
The federal government says it’s denying part of Rogers’ bid to merge with Shaw, specifically in terms of cellphone service. However, that doesn’t mean the deal is dead. The Competition Bureau says the sale will create a situation where Videotron is likely to be more “aligned” with Rogers and more vulnerable to anti-competitive actions by Rogers. He also notes that even with the sale of Freedom, Rogers will still get customers from Shaw Mobile. The Competition Bureau is one of three regulatory agencies that must approve the deal before it closes, in addition to the CRTC and Innovation, Science and Economic Development Canada. Last week, the competition watchdog doubled down on its intention to block the deal entirely. The hearing is expected to last four weeks with oral arguments scheduled for mid-December. Chief Justice Paul Crampton will head the Competition Tribunal panel during the hearing. Rogers hopes to close the Shaw deal by the end of the year, with a possible further extension to January 31, 2023.
