OTTAWA – The Competition Bureau has reached an agreement with BCE and Rogers over the wireless rivals’ plan to jointly own independent mobile retailer Glentel's Canadian retail distribution outlets.
The Bureau had previously expressed concerns that the acquisition, announced in December 2014, would likely result in a substantial lessening of competition in the wireless sector. Glentel sells wireless products and services from Bell Mobility, Chatr, Fido, Rogers Wireless, SaskTel and Virgin Mobile at 359 locations across Canada, though in the vast majority of its locations, it only offers the wireless products and services of BCE and Rogers.
Under the consent agreement filed Wednesday with the Competition Tribunal, the Bureau dictated that administrative firewalls be put in place between BCE, Rogers and Glentel to prevent the sharing of competitively sensitive information, including subscriber information, pricing and promotional offers.
“These firewalls are necessary to ensure that the transaction does not provide BCE and Rogers with the ability to share confidential information which could result in consumers paying higher prices for wireless products and services”, the Bureau said. “The agreement will further ensure that BCE and Rogers do not obtain similar information from their competitors that also distribute through Glentel locations.”
The Bureau added that it consulted with a broad range of market participants, including other wireless carriers and retailers, during the course of its review.
“The Bureau is confident that the agreement reached today will ensure that there will not be significant anti-competitive effects for Canadian consumers arising from BCE and Rogers' acquisition of Glentel”, said Jeanne Pratt, senior deputy commissioner, mergers and monopolistic practices, in a statement. “We are pleased that BCE and Rogers chose to work with the Bureau to find a solution that addresses the Bureau's concerns."
