Rogers-Shaw deal would cause ‘severe vulnerability’ for Videotron: Competition Bureau

OTTAWA –

A lawyer representing Canada’s competitors watchdog says Rogers Communications Inc. and Shaw Communications Inc.’s plan to promote Freedom Mobile to Quebecor Inc.’s Videotron will put Videotron ready of “severe vulnerability.”

John Tyhurst made the argument earlier than the Competition Tribunal at this time, saying it would create a relationship of dependence between an enormous three telecom firm and a a lot smaller, regional participant that should depend on Rogers’ goodwill to compete.

Tyhurst steered the deal’s potential to make Videotron susceptible to Rogers needs to be sufficient to scuttle the $26-billion sale of Shaw to Rogers.

Rogers and Shaw floated the Freedom sale earlier this 12 months in an try and ease issues raised by the Competition Bureau.

However, Tyhurst says the deal could be accompanied by a fancy net of 13 agreements paying homage to the kind of settlement that’s routinely rejected by competitors legislation and that might improve the percentages of coordination between the 2, if Videotron fears retaliation.

Tyhurst’s remarks have been a part of the ultimate stage of arguments he’ll make on behalf of the Competition Bureau in a listening to meant to resolve whether or not Roger and Shaw might be granted approval for his or her deal.

This report by The Canadian Press was first revealed Dec. 13, 2022