The Canadian competition authority reiterates its opposition to the Rogers-Shaw agreement

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The Rogers Building, home of Rogers Communications in Toronto, Ontario, Canada October 22, 2021. REUTERS/Carlos Osorio

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TORONTO, June 17 (Reuters) – Canada’s antitrust regulator said on Friday the merger of Rogers Communications (RCIb.TO) and Shaw Communications (SJRb.TO) should not go ahead as it threatens competition and economic gains. efficiencies claimed by companies are not enough to compensate for this.

The bureau’s response raises uncertainty over the closing of the deal which could now head towards litigation in the Competition Tribunal. Rogers-Shaw has set July 31 as the closing date for the transaction.

The bureau went on to claim that selling Shaw’s Freedom mobile was not an effective remedy for the merger and that it would weaken Freedom’s operations, removing “competitive discipline” from national carriers. The merger would also result in a transfer of wealth from low- and middle-income groups to wealthy Rogers-Shaw families, the office said.

The Competition Bureau was responding to the petition filed by Rogers and Shaw earlier this month to read more. Last week, in an email response to Reuters, the office said it wanted to expedite the case.

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Reporting by Divya Rajagopal and Ismail Shakil in Toronto Editing by Alistair Bell

Our standards: The Thomson Reuters Trust Principles.

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