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Competition Bureau looks to block Rogers-Shaw deal

The Competition Bureau says it has filed an application to block Rogers Communications Inc. from purchasing Shaw Communications Inc., saying the transaction would result in higher prices, poorer service quality and fewer choices, particularly in wireless services.
The bureau challenged the $26 billion acquisition Monday by asking the Competition Tribunal to prevent it from proceeding. The bureau says it is also requesting an injunction to stop the parties from closing the deal until its application can be heard.
The federal regulator alleges that removing Shaw as a competitor threatens to undo the progress it has made introducing more competition into the wireless service market, where Rogers, Bell and Telus serve around 87 per cent of Canadian subscribers.
The bureau’s investigation determined the proposed acquisition would eliminate “an established, independent and low-priced” competitor in Shaw-owned Freedom Mobile. It says it would also prevent other competition in wireless services in Ontario, Alberta and British Columbia and suppress further competition in areas, including 5G.
“The Competition Bureau conducted a rigorous investigation of the proposed Rogers-Shaw merger and concluded that it would substantially prevent or lessen competition in wireless services,” said Commissioner of Competition Matthew Boswell, in a statement. “Eliminating Shaw would remove a strong, independent competitor in Canada’s wireless market – one that has driven down prices, made data more accessible, and offered innovative services to its customers. We are taking action to block this merger to preserve competition and choice for an essential service that Canadians expect to be affordable and high quality.”
The companies reached the deal in March 2021.
Rogers and Shaw have 45 days to file a response with the Competition Tribunal.