The proposed merger of the two Canadian telecommunications giants faces new hurdles after the federal competition commissioner announced his intention to block it.
In a joint statement released late Friday night, Rogers Communications and Shaw Communications said they were notified of the commissioner’s intention to file applications with the Competition Tribunal to challenge the proposed merger.
Both companies have indicated that they do oppose the Competition Commissioner’s request to challenge the proposed merger while continuing to work properly with the Competition Bureau.
The Competition Bureau is one of three regulators that must approve the deal. The Canadian Radio-television and Telecommunications Commission (CRTC) has already given the green light to Rogers Communications ’acquisition of Shaw’s broadcasting services, which are subject to certain conditions and changes.
Shaw is trying to sell Freedom Mobile’s wireless phone service. The sale is expected to be one of the conditions set by the federal Department of Innovation, Science and Economic Development (ISED).
The Competition Bureau did not respond to a request for comment.
Shaw and Rogers want to move forward.
According to them, the merger proposal will give them the skills needed to invest in digital infrastructure, create jobs, drive change, increase choice and close the digital divide. He will give significant long -term benefits for the general public, business and economy.
Obstacles
The Competition Bureau’s rejection is the latest in a series of hurdles the proposed merger has had to overcome since it was announced in March 2021.
Last month, two consumer advocacy groups filed a petition asking the federal cabinetto cancel the decision of CRTC to approve the transfer of broadcasting services from Shaw Communications to Rogers Communication, arguing that it would result in significant price increase for television services.
Another variable in this equation is the sale of Freedom Mobile assets. Rogers and Shaw reiterated their promise to sell the business to address the concerns raised by the Commissioner of Competition and ISED.
Source: Radio-Canada
