Ottawa –
Rogers Communications Inc. and Shaw Communications Inc.’s plan to sell Freedom Mobile to Quebecor Inc.’s Videotron would put Videotron in a “seriously vulnerable” position, lawyers representing Canada’s competition watchdog said.
John Tyhurst made the argument in competition court today, saying it would create a dependency between the big three telcos and the much smaller regional players, which would Had to rely on Rodgers’ goodwill to compete.
Tyhurst said the deal could make Videotron vulnerable to Rogers, enough to derail the $26 billion sale of Shaw to Rogers.
Rogers and Shaw floated the Freedom sale earlier this year in an attempt to assuage concerns raised by the Competition Bureau.
However, Tyhurst said the deal would come with a complex web of 13 agreements reminiscent of the type of agreements often rejected by competition law, which could increase the likelihood of coordination between the two if Videotron fears retaliation sex.
Tyhurst’s comments are part of the final stage of his debate on behalf of the Competition Bureau at a hearing to decide whether Roger and Shaw will approve their deal.
This Canadian Press report was first published on December 13, 2022