The Competition Bureau announced on Monday both Rogers and Shaw have agreed to a preliminary injunction that stops them from closing their deal, until a decision has been made by the Competition Tribunal.
Earlier this month, the Competition Bureau filed an application with the Tribunal to block the Rogers-Shaw deal through a court injunction. The Bureau will be proving its case to the Tribunal to stop the merger from proceeding.
Rogers and Shaw have agreed to the Competition Bureau’s request for an expedited hearing process in front of the Tribunal.
“Vigorous competition is essential for Canadians to access affordable, high quality wireless services. I’m pleased this case can now move quickly towards a hearing before the tribunal. Our objective remains to protect Canadians by preserving competition and choice in Canada’s wireless market,” said Matthew Boswell, Commissioner of Competition.
The Bureau believes the $26 billion Rogers-Shaw merger will result in higher prices and less competition when it comes to wireless services. The deal would remove Freedom Mobile as a fourth player and retain Canada’s wireless market to be held in control by three major players, primarily Rogers, Telus and Bell with roughly 87% of subscribers in Canada.
“Rogers and Shaw strongly believe the Transaction is in the best interests of Canadian consumers, businesses and the Canadian economy, and that a settlement is the best path forward in ensuring that the benefits of the Transaction are fully and expeditiously realized,” said Shaw and Rogers in a statement.
“If a Tribunal hearing is ultimately required to address the Commissioner’s application to prevent the Transaction, Rogers and Shaw intend to oppose it. An expedited schedule of that application is expected to be set soon,” said both companies on Monday afternoon.
Want to see more of our stories on Google?
P.S. Want to keep this site truly independent? Support us by buying us a beer, treating us to a coffee, or shopping through Amazon here. Links in this post are affiliate links, so we earn a tiny commission at no charge to you. Thanks for supporting independent Canadian media!
On who is there a burden of proof?
Like, it’s an expedited tribunal, and I’m sure with these types of things the results are usually “party failed to provide adequate evidence in favour of their opinion”.
So is it Rogers that is burdened to prove that they will not impact competition or is it the competition bureau that has to prove that it will?
Regardless of what the average Canadian knows (it will negatively impact competition), it may not be so easy to provide objective proof of it.
Yeah, it’s just a show at this point. No one’s interested in being a 4th player in Canada. Foreign conglomerates would’nt even look at the cesspool of shhit that our telecom landscape is, and the regional guys are too feeble to make a dent in the oligopoly. It’s a lost cause.
One US state California has more population than the whole Canada’s. If I were to invest and build a company in telecommunication sector, I wouldn’t put my money in Canada.
Three Canadian carriers each have higher margins than any wireless carrier in the US (or anywhere else on the world).
Actually the previous owner of Wind has come forward with a deal to buy back the carrier. He has even inked a tentative spectrum sharing deal with Telus (if he wins the purchase then the deal goes through) so he can expand the network but you can bet Rogers and Bell will not be happy about that.