OTTAWA – The divestitures proposed by Rogers Communications and Shaw Communications to gain approval for their proposed merger will not prevent “substantial” lessening of competition, according to the Commissioner of Competition.
As Cartt.ca reported earlier this week, the Competition Bureau has filed applications with the Competition Tribunal to prevent Rogers from acquiring Shaw due to the impact it believes the merger will have on wireless competition.
Rogers is currently in the process of divesting of Shaw’s wireless assets after Minister of Innovation, Science and Industry François-Philippe Champagne issued a press release at the beginning of March saying he would not allow Rogers to acquire all of Shaw’s wireless licences.
In a notice of application posted on the Competition Tribunal’s website this week, however, the Commissioner of Competition argues the proposed divestitures are not enough to “eliminate the substantial lessening or prevention of competition resulting from the Proposed Transaction,” despite claims by Rogers and Shaw to the contrary.
In the document, Shaw is referred to as a “maverick competitor with a proven track record of disrupting wireless services markets and leveraging its wireline business to compete more vigorously.”
The Commissioner of Competition argues by separating Freedom Mobile from Shaw, the new owners of Freedom will operate with reduced competitiveness.
For the full notice of application, please click here.
