Rogers Communications said the Competition Bureau’s opposition to its proposed acquisition of Shaw Communications is not supported by evidence.
The document presented on Friday by the telecommunications giant follows the competition commissioner’s announcement in early May. He then opposed the $ 26 billion transaction, fearing the merger prevents or greatly reduces competition in wireless services.
A bad review
Rogers said the commissioner failed to properly assess the quantifiable effects of the merger or properly weigh the efficiencies offered by the transaction.
The company also says its offer to remove Shaw’s wireless division under the Freedom brand should better address the commissioner’s competition concerns.
In May, the commissioner said the proposed sale of Freedom would not be sufficient to remedy the effects of the merger on competition, in particular arguing that by selling Freedom, Shaw would not be able to bundle these services into its wireline business. .
Unreasonable efforts according to Rogers
Rogers asserted that the benefits of such a combination were minimal and that the commissioner’s efforts to block the transaction regardless of the divestitures were unreasonable and contrary to both the economy and the facts presented to the Bureau.
Opposing the deal, the commissioner said that since entering the market in 2016 with the acquisition of Freedom, Shaw has lowered prices and made wireless data easier to access, and the sale of the wireless society will reduce profits. this beneficial effect.
The commissioner also said the proposed deal with Rogers has already prevented competition from Shaw in the market, resulting in a setback in plans to expand into new markets, acquire more wireless spectrum and expand wireless services. its business.
Rogers said in its filing that the supposedly competitive impact of Freedom’s transition to commercial services was unproven, and that the commission was wrong when it said Shaw would make the necessary investments to become a competitive force on the spectrum when no 5G wire.
” Faced with the prospect of making large capital investments, Shaw chose to sell instead. “
The company also says that once divested, Freedom will be well placed to compete, as it will have the same spectrum, towers and other operating assets.
The Competition Bureau now has 14 days to respond to Rogers ’document. Rogers and Shaw agreed this week not to complete the merger until the Competition Bureau’s objections are resolved.
Source: Radio-Canada
