The Competition Bureau has filed applications in court to block the proposed merger of Rogers Communications and Shaw Communications, valued at $ 26 billion.
The regulator on Monday asked the Competition Tribunal to block the deal from proceeding because it believes removing Shaw as a competitor would jeopardize the significant progress the company has made.
According to the Competition Bureau, the merger of the two companies will lead to price increases, decrease in service quality and loss of choice, particularly regarding wireless services.
The organization even sought an injunction to prevent the parties from completing the transaction until its request was heard.
According to the Competition Bureau, Shaw’s presence in the wireless market has made a significant contribution to competition in recent years, but since announcing the agreement with Rogers, its efforts have begun to decline.
Both Rogers and Shaw have indicated in recent days that they intend to advance their transaction and oppose the competition commissioner’s efforts to block it.
The Competition Bureau is one of three regulatory agencies whose approval is required for the deal to proceed.
The Canadian Radio-television and Telecommunications Commission (CRTC) had already decided on the deal earlier this year, and the two companies are also awaiting a decision from Innovation, Science and Economic Development Canada (ISED).
Source: Radio-Canada
