Comp. commish has no issue granting Videotron intervenor status in Rogers-Shaw merger tribunal

The Commissioner of Competition said Quebecor Inc.’s Videotron should be granted intervenor status in the review of the proposed merger of Rogers Communications Inc. and Shaw Communications Inc. According to Thursday’s response to Videotron’s request, the commissioner said it had no issue granting Videotron intervenor status on the basis that the commissioner be granted the right to documentary discovery and oral examination of Videotron; and with the understanding that it is “improper for Videotron to raise the issues of amelioration of anti-competitive effects and efficiencies accruing to itself as a result of the proposed divestiture, as these are not issues raised in the pleadings by any party.” In May the Competition Bureau made clear that it sought to block the merger or, in the alternative, “certain relief to eliminate the substantial prevention or lessening of competition that would result from the merger.” The bureau wrote in its May 9th application to the tribunal that a simple divestiture of Shaw’s wireless assets in the $26 billion deal would still harm competition in the wireless space “by severing from the divested business the wireline assets that the Shaw Mobile brand utilizes to provide bundles of wireline and wireless services to consumers in Alberta and British Columbia, and by weakening the competitiveness of the Freedom Mobile business and its ability to compete, innovate and grow.” In June, Quebecor, Shaw and Rogers announced that they had reached a deal to sell Shaw’s Freedom Mobile wireless to Quebecor for $2.85 billion. Videotron is now proposing to intervene in the case to demonstrate its history as an effective and disruptive competitor in Quebec; whether the Proposed Divestiture provides Videotron with sufficient assets to compete effectively in Ontario, Alberta and British Columbia; whether Videotron will be able to operate independently of Rogers; whether the purchase produces any efficiencies that would accrue to Videotron; the company’s plans regarding entry, pricing, bundling, and competition in the market; and the effect it will have on competition. The commissioner said that Videotron meets the test for leave to intervene because it will be directly affected by the outcome of the tribunal, the topics raised by Videotron are legitimately within the scope of the tribunal’s consideration, and it will bring “a unique or distinct perspective” that will assist the tribunal in its decision. “However, it is not appropriate for Videotron to raise the new issues of whether the Proposed Divestiture ameliorates the anti-competitive effects of the merger and produces any efficiencies that would accrue to Videotron. Neither issue has been pleaded by any party. An intervenor may have pertinent information and a useful perspective about the issues, but an intervenor may not re-cast the case. Unless a party amends its pleadings to raise the issue, Videotron cannot expand the scope of this application,” the commissioner noted in the Thursday response. The commissioner also found that it had a right to discover Videotron (seek evidence before trial) because the three companies entered into an agreement over Freedom Mobile’s purchase after the Competition Bureau filed its application with the tribunal. “This development gives rise to critical and complex issues relevant to the case the commissioner must meet. Insofar as Videotron supports the position of Rogers and Shaw, the commissioner is entitled to ‘be informed as possible about the positions of the other parties and should not be put at a disadvantage by being taken by surprise at trial,’” the response states. “The centrality of Videotron’s anticipated proposed intervention and potential related evidence means the Commissioner would be significantly disadvantaged and could be surprised at trial without discovery.” *** – Reporting by Jenna Cocullo at jcocullo@thewirereport.ca and editing by Paul Park at ppark@thewirereport.ca.

Comp. commish has no issue granting Videotron intervenor status in Rogers-Shaw merger tribunal

News | July 22, 2022

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Comp. commish has no issue granting Videotron intervenor status in Rogers-Shaw merger tribunal

News | July 22, 2022

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