Pierre Karl Péladeau, CEO of Québecor, is urging the federal government to intervene in a deal between Loblaw and a company owned by Rogers and Bell.
The agreement could result in Québecor and other wireless providers being excluded from 180 Loblaw-owned stores through The Mobile Shop kiosks, reports CBC News.
In a letter sent to Industry Minister François-Philippe Champagne on May 9, Péladeau criticized Loblaw for deciding to “prematurely end” Québecor’s contract for wireless services at kiosks inside Loblaw grocery stores, branding the move as anti-competitive and against consumer interests. The Mobile Shop currently sells cell phone plans from seven providers, including Québecor’s Freedom Mobile.
According to Péladeau, The Mobile Shop will soon exclusively offer products from Glentel, a retailer owned by Bell and Rogers (acquired in 2015). He claims this decision is an attempt to exclude other cellular providers and benefit Glentel, citing it as a strategy by Bell and Rogers to stifle competition.
Péladeau has called on Minister Champagne for “direct and firm” action against Loblaw, Rogers, Bell, and Glentel. Champagne responded by stating that the Competition Bureau should handle the issue, as it has the authority to address such matters.
In a statement, The Mobile Shop claimed that its market presence is minimal, representing less than five percent of mobile phone and plan sales in Canada. The company argued that its decision on which carriers to offer does not impact competition significantly.
Péladeau also raised concerns about Glentel, a company jointly owned by Bell and Rogers. In 2015, the Competition Bureau allowed this joint acquisition, provided that an “administrative firewall” was established to prevent the sharing of sensitive information. Despite this, Péladeau argues that the deal with Loblaw favours commercial interests over consumer interests and threatens fair competition.
Recently, some Canadians boycotted Loblaw stores claiming the company’s high profits are excessive to go with high pricing for groceries.
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