ROGERS SHAW DEAL UP AGAINST A NEW CHALLENGE BASED ON A FEDERAL COURT RULING

Jan 03, 2023

By Jane Brown

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There is another obstacle in the proposed merger between Rogers Communications and Shaw Communications.

A federal Court has issued an emergency stay suspending the Competition Tribunal’s dismissal of the Competition Bureau’s case against Rogers’ $26-billion takeover of Shaw.

A statement from the Competition Bureau says the temporary suspension will remain in place until the agency’s application for a stay and an injunction is heard.

The injunction would block the deal from closing until the Bureau’s full appeal of the decision has been argued.

Consumer Advocate and Journalist Ellen Roseman told Zoomer Radio’s Fight Back with Libby Znaimer, the big issue here is Videotron, which Rogers and Shaw agreed would buy Freedom Mobile, a part of the deal which was not outlined in the original offer.

“It seems wrong that the Tribunal didn’t even mention it, didn’t talk about it. Rogers and Shaw had already signed a lot of contracts with Videotron, so maybe they felt they couldn’t disrupt this deal or tear it up,” Roseman explained, “But it doesn’t seem right that they aren’t looking at the original offer versus amended terms that these companies are offering.”

Listen to the full conversation by clicking here.

In its ruling last Thursday, the Tribunal said that the merger would not likely result in higher prices for wireless customers.

But the Competition Bureau had sought to block the merger, and in its appeal, argues that the Tribunal acted outside of its jurisdiction.

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