MONTREAL, TORONTO and CALGARY – A second mediation attempt between Rogers Communications, Shaw Communications and Quebecor and the Competition Bureau has failed, according to a press release issued by the three companies today.
Rogers and Shaw are currently seeking approvals for their proposed merger. In an attempt to quell concerns about the potential impact of the deal on wireless competition in Canada, the companies agreed to sell Shaw’s Freedom Mobile to Quebecor subsidiary Videotron.
The first attempt at mediation between Rogers, Shaw and the Competition Bureau happened in July.
The second mediation attempt took place earlier today.
“We are disappointed with this outcome and believe that litigation is both unnecessary and harmful to competition,” the press release today says. “The Bureau’s unwillingness to meaningfully engage unduly delays lower wireless prices for Canadian consumers.”
The statement indicates Rogers, Shaw and Quebecor are still committed to completing the transactions and are confident in the strength and merits of their case.
“Once completed, our proposed series of transactions will positively transform the Canadian telecommunications industry in both the wireline and wireless segments,” the press release says.
“The combined Videotron-Freedom business will have everything it needs to compete as a stronger fourth carrier for the long term, including critical 5G spectrum. Quebecor’s commitment to lower wireless prices for Canadians across the country is one of the many benefits that the proposed transactions will create.
“At the same time, the combined Shaw-Rogers wireline business will have a national network positioned to compete against the telcos for the long-term,” says the release.
This failed attempt at mediation means it is more likely than not there will be a hearing between Rogers and Shaw and the Competition Bureau before the Competition Tribunal starting early next month. (The parties can still come to an agreement before then, but given the two failed mediation attempts, this appears unlikely.)
News about the mediation comes two days after the industry minister made a public statement about what he expects to see included in the terms of the Freedom sale.
The minister still needs to approve the transfer of spectrum licences associated with the Rogers and Shaw merger as well as with the sale of Freedom.
The CRTC has already approved the broadcast side of the Rogers and Shaw deal.
Cartt.ca reached out to the Competition Bureau for comment but have not heard back yet.
Update, 8:15 p.m.: A spokesperson for the Competition Bureau told Cartt.ca via email they are aware of the press release issued by Rogers, Shaw and Quebecor announcing mediation failed today “and disagree with its contents entirely, except for the fact that a negotiated settlement was not reached.” The spokesperson declined to comment further as the bureau is required to conduct its work confidentially.
