Canada’s antitrust regulator said on Friday it remains opposed to Rogers Communications’ plan to purchase Shaw Communications, rejecting the companies’ argument that benefits to the economy would offset the harm to competition.
Proceedings to litigate the matter are due to start on June 23 and could continue until the end of the year.
The Competition Bureau has, however, not won a merger challenge before. Of eight that have gone before the competition tribunal, it lost or settled six, and two are pending, according to official data.
Canadian law allows for mergers that harm competition to be approved if the companies can prove the merger brings efficiency to the economy.
As part of the proposed C$20 billion ($15.4 billion) deal, Rogers has offered to sell Shaw’s Freedom mobile unit to allay competition concerns.
The bureau said the sale would weaken Freedom’s operations, taking out “competitive discipline” for the national carriers. The merger would also lead to a transfer of wealth from low and middle income groups to the wealthy families of Rogers-Shaw, it said.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
DOJ and FTC Introduce Website for Reporting Anti-Competitive Healthcare Practices
Apr 18, 2024 by
CPI
US Congress Advances Legislation to Compel TikTok Sale
Apr 18, 2024 by
CPI
UK Financial Sector Advocates Enhanced Regulatory Accountability
Apr 18, 2024 by
CPI
Google and All 50 States Defend $700 Million Consumer Settlement
Apr 18, 2024 by
CPI
Colorado Enacts First Law to Protect Consumer Brainwave Data
Apr 18, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI