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Competition Bureau seeks to block Rogers, Shaw merger

The Competition Bureau has announced that it will seek a “full block” of the proposed $26 billion acquisition of Shaw by Rogers. The bureau has files court applications to prevent the merger of the two companies, stating that it is an effort to “protect Canadians from higher prices, poorer service quality and fewer choices, particularly in wireless services.” The bureau has requested an order from the Competition Tribunal to prevent the deal from proceeding. The bureau also requested an injunction to stop the parties from closing the deal until its application can be heard. The bureau must now prove its case before the tribunal in order to stop the acquisition. The bureau's application alleges that the merger would substantially prevent or lessen competition by eliminating an established and independent competitor and preventing future competition for wireless services.

“The Competition Bureau conducted a rigorous investigation of the proposed Rogers-Shaw merger and concluded that it would substantially prevent or lessen competition in wireless services,” said Matthew Boswell, Commissioner of Competition. “Eliminating Shaw would remove a strong, independent competitor in Canada's wireless market, one that has driven down prices, made data more accessible, and offered innovative services to its customers. We are taking action to block this merger to preserve competition and choice for an essential service that Canadians expect to be affordable and high quality.”

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