Comp. Bureau asks court for info from Bell, Telus, Quebecor, Xplornet in its review of Rogers-Shaw deal

The Competition Bureau is asking the Federal Court for an order compelling the release of information from BCE Inc., Xplornet Communications Inc., Quebecor Inc., and Telus Corp. -- information the bureau says it needs in its ongoing review of the proposed merger between Rogers Communications Inc. and Shaw Communications Inc. In the case of its request for documents from Quebecor, a Competition Bureau official argued in an affidavit that it is "examining, among other things, documents pertaining to the Respondent’s entry and expansion plans, the Respondent’s analysis of the impacts of the Proposed Transaction on competition for mobile wireless services, as well as the effectiveness of the Respondent as a competitor for the provision of mobile wireless services." Regulatory approval of the merger, announced in March, is widely understood to hone in on the Competition Bureau's assessment of the effect of the move on the country's wireless market, where Rogers and Shaw compete through Shaw's Freedom Mobile brand. The court filing points to the recent CRTC decision in the wireless review, and statements from Quebecor CEO Pierre Karl Péladeau saying he would like to expand the company's wireless footprint. "Assessing the likelihood of entry by the Respondent is relevant to the Bureau’s assessment of effective remaining competition and barriers to expansion," the affidavit said. In the case of Xplornet, the Competition Bureau wrote it is seeking information related to the state of competition in the wireless market in Manitoba, after Bell was forced by the bureau to sell Manitoba Telecom Services' wireless assets in that province to other companies, including Xplornet. Xplornet, the bureau's affidavit reads, is the most recent entrant to offer mobile services in Canada, beginning in 2018 in Manitoba after it purchased the divested MTS assets. "As the most recent mobile wireless entrant in Canada, the Respondents’ data and records will assist the Bureau in assessing barriers to entry," the affidavit reads. Specifically, the bureau is seeking information from Xplornet regarding the company's "pricing policies and strategies, including records and information to inform the Bureau as to the Respondents’ ability to price competitively with Rogers and Shaw." In April, during hearings into the proposed merger, Competition Bureau Commissioner Matthew Boswell told MPs on the House of Commons industry committee that his office did not have the capabilities to assess the effectiveness of its mandated divestiture of MTS's wireless assets as a condition of approving Bell's acquisition of the company. From Bell and Telus, the Competition Bureau is requesting a broad swath of information, including internal reports related to network infrastructure, pricing competition, and customer retention, and any company responses to the CRTC's wireless review decision. — Reporting by Michael Lee-Murphy at mleemurphy@thewirereport.ca and editing by Hannah Daley at hdaley@thewirereport.ca

Comp. Bureau asks court for info from Bell, Telus, Quebecor, Xplornet in its review of Rogers-Shaw deal

News | July 26, 2021

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Comp. Bureau asks court for info from Bell, Telus, Quebecor, Xplornet in its review of Rogers-Shaw deal

News | July 26, 2021

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