Shaw, Rogers, Quebecor say they welcome Federal Court of Appeal ruling

OTTAWA –

The Federal Court of Appeal has dismissed the Competition Bureau’s effort to overturn a key approval of Rogers Communications Inc.’s takeover of Shaw Communications Inc.

Court of Appeal Justice David Stratas mentioned Tuesday the bureau’s arguments do not meet the brink of an overriding error going to the core of the case that may be required to overturn the choice by the Competition Tribunal to approve the $26-billion deal.

“This is a high threshold. It is not enough to pull at leaves and branches and leave the tree standing; rather the entire tree must fall,” he mentioned, delivering a call from the bench earlier than the businesses concerned had given their oral arguments.

The Competition Tribunal, in its Dec. 30 approval, made it clear the transaction would not going forestall or considerably reduce competitors, supported by ample proof, mentioned Stratas.

“Even if the Competition Tribunal erred on the narrow legal points the commissioner now raises in this court, we are not persuaded that the result could have been different. Thus it would be pointless to send this case back to the Competition Tribunal.”

The Competition Bureau’s arguments had targeted on what they mentioned have been 4 key authorized errors that targeted particularly on how the proposed sale of Shaw’s Freedom Mobile to Videotron factored into the tribunal’s choice.

Bureau lawyer Alexander Gay argued that the tribunal ought to have assessed the deal as initially proposed, earlier than the addition of the sale of Shaw’s Freedom Mobile to Quebecor-owned Videotron Ltd.

Had the deal been assessed as a treatment to competitors considerations, relatively than an integral a part of the deal, it would not have stood up, mentioned Gay.

“It’s almost entirely a series of service agreements between competitors. Those couldn’t have been considered,” mentioned Gay.

“That is a huge error. And that I think gives enough doubt in this case that really it should be sent back for that very reason.”

Justice Strata mentioned that analyzing the merger alone, which could not go ahead with out the divestiture of Freedom Mobile, can be a “foray into fiction and fantasy,” and that the tribunal is just not shackled to the sooner construction of the transaction.

The deal, which Rogers hopes to shut by Jan. 31, nonetheless requires approval from Industry Minister Francois-Philippe Champagne.

Champagne mentioned in an announcement that he was reviewing the Federal Court of Appeal’s choice and will probably be making a call on the deal sooner or later.

“Promoting competition and affordability in the telecom sector has been — and remains — my top priority,” he mentioned.

Rogers Communications, Shaw Communications and Quebecor applauded Tuesday’s courtroom ruling.

“We welcome this clear, unequivocal, and unanimous decision by the Federal Court of Appeal,” they mentioned in a joint launch.

“We continue to work with Innovation, Science and Economic Development Canada to secure the final approval needed to close the pro-competitive transactions and create a stronger fourth wireless carrier in Canada and a more formidable wireline competitor.”

Advocacy group OpenMedia mentioned in an announcement that the deal because it stands means much less alternative and costlier costs.

“The deal the Tribunal accepted is still terrible for ordinary Canadians,” mentioned OpenMedia campaigns director Matt Hatfield.

He urged Champagne to dam the deal and as a substitute set decrease charges for web service suppliers to entry web infrastructure.

The House of Commons trade and know-how committee, which beforehand really helpful towards the deal, is ready to fulfill Wednesday to look once more on the transaction.

Matthew Boswell, Commissioner of Competition, mentioned he was disenchanted with the ruling.

“Although today’s developments are discouraging, we stand by the findings of our investigation and the decision to challenge the merger,” he mentioned Tuesday evening in a launch.

“We brought a strong, responsible case to the Tribunal after conducting a thorough examination of the facts.”

Boswell mentioned whereas they proceed to disagree with the Tribunal’s findings, they settle for the choice and won’t pursue an additional attraction.

This report by The Canadian Press was first revealed Jan. 24, 2023.