CHATHAM, Ont. — Independent ISP TekSavvy has asked the Competition Bureau for a status update on a complaint it filed almost a year ago alleging Bell and Rogers have engaged in anti-competitive practices by abusing their dominant positions in wholesale and retail markets for broadband Internet services in Ontario and Quebec.
TekSavvy’s 57-page formal complaint was filed February 20, 2020, and the company issued a press release at the time, and made a public version of the complaint available here.
In a letter sent last Friday, TekSavvy is asking what the status is of the Competition Bureau’s investigation into TekSavvy’s complaint against Bell and Rogers.
TekSavvy notes in its letter it has provided significant additional information since filing its complaint, at the Bureau’s request, including responding to a request for information as well as a further submission on December 4, 2020.
“As detailed in TekSavvy’s December 4, 2020 submission, Bell and Rogers’ anti-competitive conduct has ‘disciplined’ TekSavvy and other WBCs (wholesale-based competitors), forcing them to raise their retail prices. As a consequence of Bell and Rogers’ conduct, competition in retail markets for home internet service in Ontario and Quebec has been substantially lessened and consumers in those markets are being forced to pay higher prices for internet service,” reads TekSavvy’s letter dated February 5, 2021.
In August 2020, TekSavvy announced it was increasing its retail prices, after the federal cabinet indicated it felt the CRTC’s lowering of wholesale rates in August 2019 may undermine investment in networks, particularly in rural and remote areas.
What TekSavvy wants now is a response from the Competition Bureau to explain what steps have been taken to move the investigation of its complaint forward, beyond seeking additional information from TekSavvy and other WBCs.
“Is the Bureau seeking additional information to assist it in determining whether the ‘reason to believe’ standard (in section 10 of the Competition Act) has been met; and, if not, one year on, when will the Bureau make a decision regarding whether or not to initiate an inquiry?” asks TekSavvy’s letter.
At the bottom of the letter, TekSavvy includes some text from a recent speech given by the Commissioner of Competition, Matthew Boswell, at a Vancouver Competition Policy Roundtable on January 26, 2021.
“Comprising a significant portion of Canada’s private-sector employment, small- and medium-sized firms are often the upstarts that drive competition in markets across Canada, challenging entrenched incumbents, and sometimes disrupting entire industries. If Canada’s small- and medium-sized businesses fail, we lose vital economic activity today, and more dynamic markets tomorrow,” reads Boswell’s prepared speech, quoted by the TekSavvy letter..
“Thanks to the pandemic, the consequences of the ‘digital divide’ have never been clearer. In response to vital public health measures, many firms have had to rapidly shift their business models to a more digital focus. To make that shift successfully, those businesses need reliable, affordable access to Canada’s networks. For this reason, the Bureau will continue its vigilance and advocate for increased competition in Canada’s telecommunications markets,” the speech by Boswell continued.
“Canada should stay the course on its commitment to the principles of competition. During a crisis, it is tempting to believe that relaxing the principles of competition will ease economic stressors and support recovery, but experience shows the opposite is true. More than ever, Canadians need the protection and benefits that competition provides. This is especially true in sectors like telecommunications and digital markets, which are critical to the success of Canadian businesses, workers and students.”
