Competition Bureau reviewing Postmedia, Torstar deal

The Competition Bureau has confirmed in an email they will review a recent deal between Torstar Corp. and Postmedia, which saw the exchange of 41 commuter, local or community newspapers between the two Canadian media organizations on Monday. Of the 41 outlets, all but 5 have been or will be shuttered in the coming weeks, according to releases from Torstar, Postmedia and various media reports. The Competition Bureau also acknowledged that Postmedia initially claimed in its release that the merger was not “subject to the merger notification provisions of the Competition Act and no regulatory clearance is required to close the transaction.” But the bureau said it will proceed with a review of the transaction, regardless. “While I cannot speak to the specifics of a Bureau review for reasons of confidentiality, under the Competition Act transactions of all sizes and in all sectors of the economy are subject to review by the Commissioner of Competition to determine whether they will likely result in a substantial lessening or prevention of competition in any market in Canada,” wrote Competition Bureau spokesman Jayme Albert in the email. Because the transaction was considered complete without needing regulatory approval, Albert said the Competition Bureau could still file a challenge up to a year after the announcement on Monday, citing the Competition Act. Heritage minister Mélanie Joly characterized the move by Postmedia and Torstar to close over 40 local news outlets as “cynical business decisions,” in question period on Tuesday. “I am disappointed that Postmedia and Torstar made this decision a month before Christmas. Of course my thoughts are with the workers and their families,” said Joly in response to questions from NDP heritage critic Pierre Nantel and MP Rachel Blaney, who asked if the federal government was waiting too long. “Is the minister ever going to take measures to help this industry, or is she going to wait until there are no newspapers left before she wakes up?” asked Nantel. Joly said it was up to the companies to explain their rationale for making the decision to close to local newspapers. She pointed to the government’s $75-million Canadian Periodical Fund as an example of its support to the news industry.

Competition Bureau reviewing Postmedia, Torstar deal

Brief | November 28, 2017

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Competition Bureau reviewing Postmedia, Torstar deal

Brief | November 28, 2017

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