Teksavvy asks Competition Bureau to investigate Rogers, Bell

The Competition Bureau has been asked to investigate a “pattern of anti-competitive activities” in wholesale and retail internet markets by BCE Inc. and Rogers Communications, in a complaint filed by independent ISP Teksavvy Solutions Inc. Teksavvy’s complaint comes as it continues to attack Bell, Rogers and other incumbent telecom companies for fighting a CRTC decision to retroactively lower rates for wholesale internet access. It launched a public campaign in January, urging the federal government to reject petitions to the Governor in Council against the CRTC’s decision. The incumbents also appealed the decision in the Federal Court of Appeal, as well as lodging a review and vary application with the CRTC. The Federal Court of Appeal in September granted a stay of the CRTC’s rates decision, keeping rates at the higher level until the appeal has been heard. In the five-page complaint lodged with the bureau on Thursday, Teksavvy claims Bell and Rogers are “abusing their dominant positions in wholesale and retail markets for wireline internet services” in Quebec and Ontario, Canada’s two largest retail markets. “Specifically, Bell and Rogers are abusing their dominant position in wholesale markets to increase competitors’ costs, while targeting those same competitors in retail markets with fighting brand offerings priced below competitors’ costs,” Teksavvy claims in its complaint. “This abuse has resulted in substantially higher retail prices for Internet service—costing millions of Canadians hundreds of millions of dollars—and if left unchecked, is likely to result in TekSavvy and other competitors exiting retail markets across Canada.” Teksavvy called for the bureau to prevent Bell and Rogers from adopting its “pincer” pricing strategy, and impose a $10 million penalty on each company in order to “promote practices by those companies which comply with section 79 of the Act.” The pincer strategy consists of Bell and Rogers offering retail prices to customers through their flanker brands at a cost lower than the wholesale rates it charges their competitors, Teksavvy alleges in its complaint. Teksavvy is asking for an inquiry into those practices in areas where Bell and Rogers’ services overlap in Ontario, and where Bell and Quebecor Inc.’s infrastructure overlaps in Quebec. It claims Quebecor also engaged in many similar “anti-competitive behaviours” but said the conduct of Bell and Rogers “has had, is having and likely to have the greatest impact on Teksavvy”. Teksavvy vice-president of regulatory and carrier affairs, Andy Kaplan-Myrth, said in a press release that Rogers and Bell “must be held accountable for their anti-competitive activities.” “Cabinet should not only reject their petitions, but take action to bring down Internet prices while the CRTC opens up the mobile sector to competition too,” Kaplan-Myrth said.

Teksavvy asks Competition Bureau to investigate Rogers, Bell

Brief | February 20, 2020

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Teksavvy asks Competition Bureau to investigate Rogers, Bell

Brief | February 20, 2020

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