TORONTO – Mobilicity is making good on its threat to sue Rogers over the launch of its new low-cost brand Chatr.
The new wireless provider told Cartt.ca that its legal counsel filed complaints against Rogers with various government agencies late last week, including the Competition Bureau, on the grounds that Chatr is in direct breach of Section 78 of the Competition Act which prohibits market leaders from using “fighting brands to discipline or eliminate a competitor.”
COO Stewart Lyons said Wednesday morning that the company will not be issuing any statements on the matter “other than to say we are strong proponents of a healthy, fair and sustainable competitive environment in Canada’s wireless sector, and we are confident that the Competition Bureau and federal government will ensure this remains the case”.
When contacted by Cartt.ca, Rogers appeared to take the notion of a lawsuit in stride.
"We have not been notified by any government agencies, including the Competition Bureau, of any complaints filed by Mobilicity," said John Boynton, Rogers’ EVP and chief marketing officer, in a statement. "Other new entrants and competitors are welcoming the competition. They, like us, believe it’s good for customers. Our motive is simple, to offer customers choice and serve a growing segment that is looking for unlimited talk and text on a network they can trust. We’ve adhered to regulations and pro-actively reached out to the Competition Bureau. We are committed to chatr and look forward to it being a success."
Mobilicity pledged to pursue legal action against Rogers in July after word leaked out that Rogers was planning to launch a new discount brand. Lyons alleged then that the move contravened Canada’s Competition Act, and that civil litigation was also a possibility.
