OTTAWA – Rogers Communications has filed with the Competition Tribunal a request for more information about how, according to the competition commissioner, Videotron will be negatively impacted by its acquisition of Shaw Communications — despite the sale of wireless assets to the Montreal-based company.
The cable giant filed a request for more detail Tuesday as to allegations that Videotron, which agreed to acquire Shaw’s Freedom wireless business, would face difficulties in the market and its competitiveness would be reduced if the deal is allowed to happen.
The allegations were made in a submission to the Tribunal earlier this month by competition commissioner Matthew Boswell, who is challenging the proposed merger as anticompetitive. In a reply comment, the commissioner said he disagrees with Rogers’s claim that the sale of Freedom would increase competition.
“That is not the case, given factors which include Rogers’ different market position and incentives from Shaw and the difficulties and reduced competitiveness which Videotron will face without wireline assets and other benefits derived by Shaw from its wireline business,” the commissioner said.
Rogers is also asking the Tribunal to get more information about the “other benefits” the commissioner alleges Shaw’s wireless business will get out of its wireline business. (Beside Freedom, Shaw also has wireless assets under its main brand name, which Globalive chairman Anthony Lacavera said he proposed to buy in addition to Freedom to ensure competition post-merger.)
The commissioner added that these factors “make it likely that there will be increased post-merger coordination and reduced competition in Wireless Services.
“Contrary to Rogers’ assertions, prior to the proposed transaction being announced, Shaw was poised to expand, by steps including extending its network in Ontario and the west, participating in the acquisition of new spectrum and offering 5G services.”
Hearings on the proposed deal are scheduled to begin in front of the Tribunal in November.
