Tag: Competition Bureau

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Mobile Syrup

Québecor’s CEO looks favourably at Competition Bureau’s blocking of Rogers Shaw merger

Montreal, QC, Canada – September 4, 2021: Quebecor headquarters in Montreal, QC, Canada. Quebecor Inc. is a Canadian diversified media and telecommunications company.

The Competition Bureau’s applications to block Rogers’ overtaking of Shaw helped Québecor Inc. favourably look into expanding its business in Canada, Pierre Karl Péladeau, Québecor’s CEO, said.

Péladeau made the comments in a press release outlining the company’s Q1 2022 results, referencing applications the federal agency filed Monday. The Bureau said Rogers’ overtaking would reduce competition and affordability.

Péladeau said comments made by the Department of Innovation, Science and Economic Development (ISED) also played a role. In March, François-Philippe Champagne, the Minister of Innovation, Science and Industry, said he wouldn’t approve a merger that would transfer Shaw’s wireless assets (in the form of Freedom Mobile) to Rogers because it would reduce competition.

In response, Rogers has attempted to ease the situation by putting Freedom Mobile up for sale, but the recent actions of the Bureau don’t seem to appease this problem.

The Globe and Mail reported Québecor was recently asked to join the conversation on acquiring Freedom Mobile, despite reportedly being excluded from initial talks.

The company’s other option of expanding, which was around before Rogers started discussions to sell Freedom Mobile, is using the 294 blocks of spectrum it purchased in the 3500 MHz band to offer telecom services in southern and eastern Ontario Manitoba, Alberta and British Columbia.

“We believe that these alternatives position us very favourably, as governmental and administrative authorities, including the Canadian Radio-television and Telecommunications Commission, pursue the public policy of establishing the conditions for true competition in wireless services in Canada,” Péladeau said.

He further referenced Québecor’s 22 percent market share in Quebec as evidence of the company’s “multidimensional expertise.”

“We would apply that expertise with equal energy in other parts of Canada. The opportunities are many and the alternatives promising,” Péladeau said.

The numbers

Québecor’s overall revenue was $1.09 billion, a $3.1 million decrease year-over-year.

8.7 percent revenue increases from Vidéotron offset the total figure. The increased revenue from mobile services and equipment totalled $20 million year-over-year.

Revenue from Vidéotron’s internet service also increased by 0.7 percent. The company added more than 1230,000 new connections over the past year.

Image credit: Shutterstock

Source: Québecor Inc.

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Mobile Syrup

Anthony Lacavera reaffirms his offer to buy Freedom Mobile

Three weeks after Rogers presented Xplornet as the apparent acquirer of Freedom Mobile to the federal government, the company has provided no indication the wireless asset owned by Shaw is close to being sold off.

The Globe and Mail broke the news in April and recently followed up with a report stating Québecor was also in talks with Rogers to acquire Freedom Mobile. This clarifies that no deal is set in stone, and a third bidder, Globalive wants to re-enter the action.

The group’s chairman, Anthony Lacavera, says his $3.75 billion offer is still on the table.

“Our offer stands. It’s a funded, fully financed offer. We’ve presented Rogers with evidence of the funding partners,” Lacavera told the Financial Post, adding he plans on contacting Rogers this week.

Lacavera started Freedom Mobile in 2009. It was called Wind Mobile, but Shaw rebranded it after buying the company.

Rogers says it’s selling off Shaw’s wireless assets to deal with competition concerns brought on by Canada’s Competition Bureau. But the federal body is opposing the merger, having filed applications to block the deal on May 9th.

As the Financial Post points out, it’s unclear if Freedom Mobile’s sale to Lacavera would resolve the concerns of the Competition Bureau.

Source: Financial Post 

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Mobile Syrup

Competition Bureau files to block Rogers-Shaw merger, cites affordability and competition

The Competition Bureau has filed applications to prevent the merger of Rogers and Shaw.

In a press release, the Bureau says removing Shaw as a wireless subscriber (through Freedom Mobile) threatens to undo the progress of introducing competition in a concentrated wireless market, given the Big 3 serve 80 percent of subscribers in Canada.

Their investigation found the competition between Rogers and Shaw has been in decline, and this will continue if the merger is approved.

They state the merger will prevent or lessen competition by eliminating an established and independent competitor, preventing competition for wireless service within and outside Shaw’s service area, and averting competition for wireless services for customers in Ontario, Alberta, and B.C.

The Bureau says Shaw is Rogers’ “closest competitor” and has challenged the company, along with Bell and Telus, by offering quality services with better pricing and data allowances.

“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,” Matthew Boswell, Commissioner of Competition, said.

“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 Bureau also asks the Competition Tribunal to approve an injunction on the $26 billion deal, blocking the merger from closing before their application is heard. The deadline for the merger is slated for July 31st.

The Bureau shared its opposition plans with Rogers Friday. In a joint statement with Shaw, Rogers stated the transaction is in the best interest of Canadians.

The companies said they are addressing concerns about competition in the wireless market by selling off Freedom Mobile. Rogers has provided little detail on the matter and won’t confirm The Globe and Mail reporting that presents Québecor and Xplornet as potential acquirers.

The Competition Bureau is one of three federal bodies that must approve the merger. The Canadian Radio-television and Telecommunications Commission has approved the merger with conditions, but approval is still needed from Innovation, Science and Economic Development Canada.

Source: Competition Bureau Canada 

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Mobile Syrup

Québecor joins conversation to acquire Freedom Mobile

Montreal, QC, Canada – September 4, 2021: Quebecor headquarters in Montreal, QC, Canada. Quebecor Inc. is a Canadian diversified media and telecommunications company.

Québecor Inc., a company previously discluded from discussions to acquire Freedom Mobile, has been asked to join the conversation.

According to the Globe and Mail, bankers representing Rogers have reached out to their counterparts at Québecor.

The Globe and Mail previously reported Rogers presented Xplornet as the company to acquire Freedom Mobile and introduced an offer to the federal government.

Stonepeak Infrastructure Partners owns Xplornet, and the publication reported representatives met with the Competition Bureau. However, the regulator has not rejected Xplornet’s proposal at this time.

In more recent developments, Rogers and Shaw say they will be opposing an application from the Commissioner of Competition that disputes the merger of the two companies.

In a joint press release, they state the roughly $26 billion deal is the best option for Canadians.

“Rogers and Shaw remain committed to the transaction, which is in the best interests of Canada and Canadians because of the significant long-term benefits it will bring for consumers, businesses and the economy.”

The release says the companies are addressing concerns the merger will have on the wireless market by selling Freedom Mobile.

The Competition Bureau is one of three federal avenues Rogers must get approval from before the transaction is approved. The company still needs approval from Innovation, Science and Economic Development Canada. The transaction has received the green light from the Canadian Radio-television and Telecommunications Commission.

Image credit: Shutterstock

Source: Globe and Mail and Rogers

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Mobile Syrup

Innovation Minister takes vocal stance against Shaw transferring wireless licences to Rogers

Minister of Innovation, Science and Industry François-Philippe Champagne says he won’t allow Shaw to transfer its wireless licenses to Rogers if the merger of the two companies is approved.

“The wholesale transfer of Shaw’s wireless licences to Rogers is fundamentally incompatible with our government’s policies for spectrum and mobile service competition, and I will simply not permit it,” he said in a statement.

Champagne says Canadians are concerned about the merger and what it will mean for the telecom sector, concerns he shares as well. As minister, Champagne says he’s committed to competition and cellphone affordability.

The Globe and Mail reported the industry and technology committee tabled a report asking Champagne to reject the merger if Rogers doesn’t agree to sell wireless licenses owned by Shaw, including Freedom Mobile. The committee last met Tuesday in an in-camera meeting. These meetings are closed to the public.

In order for the merger to go through, the Canadian Radio-television and Telecommunications Commission (CRTC), the Competition Bureau, and Innovation, Science and Economic Development Canada (ISED) need to provide approval.

Source: Innovation, Science and Economic Development Canada

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Mobile Syrup

Canada’s Competition Bureau is investigating Google’s ad business

Canada’s Competition Bureau is launching a formal civil investigation into Google’s online advertising sales practices.

In a Friday press release, the independent law enforcement agency quietly announced it had successfully filed and obtained a court order through the Federal Court of Canada.

The court order will require that Google produce records and written information relevant to the Bureau’s investigation.

As to what the investigation is looking into, details remain somewhat vague.

The statement says that the investigation’s goal is to determine whether the American multinational tech behemoth has “engaged in certain practices that harm competition in the online display advertising industry in Canada.”

By harm, the Bureau is specifically referring to “impeding the success of competitors; and resulting in higher prices, reducing choice and hindering innovation for advertising technology (ad tech) services, and harming advertisers, publishers and consumers.”

Early reporting from The Wire Report suggests that the Bureau is looking for evidence of antitrust polices and strategies, based of a number of aggressive-sounding keywords (e.g. “crush”, “kill”, “hurt”) listed in the official court order:

The release also mentions the Competition Bureau’s previous investigation into Google’s advertising practices, which launched in 2013.

The three-year investigation was discontinued in April 2016, the Bureau concluding “that there is no compelling evidence to suggest this conduct has excluded rivals or harmed Canadian publishers or advertisers, or that it has resulted in a substantial lessening or prevention of competition in this market.”

If the Competition Bureau has gone to the trouble of opening another investigation and obtaining a court order, it seems likely that new evidence or allegations have emerged since then.

Source: Canada.ca

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Mobile Syrup

Competition Bureau issues request for information about Rogers-Shaw deal

Canada’s Competition Bureau has issued a request for information (RFI) to gather facts about Rogers’s proposed Shaw Communications acquisition.

In a notice posted on the Bureau’s website this week, it welcomed market participants and Canadians to “submit relevant information to assist the Bureau with its investigation.”

Specifically, the Bureau says it’s investigating whether the proposed merger “is likely to result in a substantial lessening or prevention of competition for mobile wireless, wireline internet and broadcasting services.”

Additionally, the Bureau says it’s seeking information to assess the impact on competition in several areas, including mobile wireless services to consumers, consumer and small business internet services, fibre transport services, supply of programming to television providers and more.

Earlier this year, the Bureau said that it received a “higher than normal volume” of feedback over the proposed Rogers-Shaw deal — it later pledged to conduct a “thorough” review of the acquisition. In August, the Bureau also received court orders to advance its review of the deal.

The Competition Bureau is one of several regulators that must review and ultimately approve the proposed acquisition for it to move forward. Along with the Bureau, the Canadian Radio-television and Telecommunications Commission (CRTC) will examine the transfer of broadcasting assets. The Commission will hold a public hearing about the proposed acquisition on November 22nd.

Currently, Rogers, Bell and Telus are arguing about the deal via submissions to the CRTC. Most recently, Rogers accused Bell and Telus of trying to block the acquisition to avoid competition.

The Ministry of Innovation, Science and Economic Development (ISED) will also need to approve the transfer of spectrum licences.

Should Rogers receive regulatory approval, the Shaw deal will likely close in the first half of 2022.

Those looking to submit information to the Competition Bureau’s RFI have until October 29th, 2021 to do so. Further, the Bureau says it will keep any information shared with it confidential. You can make an RFI submission to the Bureau here.

Source: Competition Bureau