PIAC looking at legal options after Heritage says GIC has no jurisdiction in Rogers-Shaw petition

In a letter from the Deputy Minister of Canadian Heritage Isabelle Mondou, the Governor in Council (GIC) has declined to intervene in the CRTC’s decision to allow the Rogers Communications Inc. merger with Shaw Communications Inc., saying that the GIC may only review cases to amend or renew a broadcasting licence. “A change in ownership effected by way of a transfer of shares does not require the issuance of new licences, nor does it constitute a renewal of those licences,” the June 22 letter states, signed by Mondou and addressed to the National Pensioners Federation (NPF) and the Public Interest Advocacy Centre (PIAC). In April, the NPF-PIAC submitted a joint appeal to cabinet seeking to overturn the CRTC decision. NPF-PIAC argued that Rogers will shift cable and satellite users to internet-protocol television, thereby raising prices by an estimated $50 for more than one million subscribers. They said that is contrary to the objectives of the Broadcasting Act. PIAC executive director and general counsel John Lawford said receiving the letter, on the last day of the petition response period, was surprising and told the Wire Report that the advocacy group is now weighing their legal options. “I think it comes as a surprise to us, and to perhaps all of the other companies that bother to intervene, that it isn't being treated as a licence transfer or being treated as a licenced amendment at least. And the trouble is, it really means that any merger cannot be petitioned to the cabinet at all, because they're always structured this way,” Lawford said. Lawford said that, in his opinion, it was not the intent of the regulations to avoid reviewing mergers by the political branch of government. “They never sent it. Never posted on their website. It wasn't sent by email. It was never posted or acknowledged in any way by the governing council." Lawford claimed that the CRTC never sent out the petition to the stakeholders who attended the oral hearings – which is required when the GIC receives a petition regarding the CRTC’s decisions. He added that the petitioners were not informed right away that the petition may be rejected on the grounds of jurisdiction. “I call it suspicious in the extreme. It looks like the government is favouring the deal and making sure that it's easy for it to close because this problem has never really got on the radar and been formally acknowledged by the government,” he said. “I think it's fair when it comes in, if they believe that cannot be granted, that they give the party sending the petition in an option or an opportunity to explain why we think it does satisfy and why it's important that they hear it. And they didn't give us that opportunity.” The Samuelson-Glushko Canadian Internet Policy & Public Interest Clinic (CIPPIC) filed a letter earlier this month supporting the petition, arguing that the merger will harm consumers because Shaw's television-only customers can expect price hikes. “Nor will the mix of band-aid restrictions and unenforceable expectations adopted by the decision stem this harm. We are particularly concerned that the decision fails to take into account the vertical concentration impacts that will result from this merger and the resulting immense market power a post-merger Rogers will wield,” CIPPIC wrote on June 2. “The CRTC’s expectation that Rogers will continue to offer television-only packages is insufficient to address this concern.” CIPPIC added that it “echoes” the House of Commons’ Heritage committee's concerns that the merger will have an impact on the quality and quantity of local news production “and reiterate its recommendation that the merger be refused.” The petition was also supported by Telus Corp. in May. The incumbent wrote that the cabinet should intervene because the transfer would undermine competition and the welfare of consumers; lead to less innovation; and reduce the ability of consumers’ choices regarding programming, platforms and service providers. The Independent Broadcast Group also supported the petition, saying it did not oppose the transaction but wanted stricter safeguards. – Reporting by Jenna Cocullo at jcocullo@thewirereport.ca and editing by Michael Lee-Murphy at mleemurphy@thewirereport.ca

PIAC looking at legal options after Heritage says GIC has no jurisdiction in Rogers-Shaw petition

Broadcast | June 23, 2022

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PIAC looking at legal options after Heritage says GIC has no jurisdiction in Rogers-Shaw petition

Broadcast | June 23, 2022

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