Competition Tribunal clears way for Rogers-Shaw merger

OTTAWA-

The Competition Tribunal has dismissed an application by Canada’s competition watchdog to block the proposed $26 billion purchase of Shaw Communications Inc. by Rogers Communications Inc., paving the way for the deal.

It still needs to be approved by Innovation, Science and Economic Development Canada.

In a summary of its ruling released Thursday, the Tribunal says merging the two telecom companies would not result in significantly higher prices.

According to the decision, the agreement that includes the sale of Freedom Mobile, owned by Shaw, to Videotron Ltd., owned by Quebecor, would not likely prevent or lessen competition substantially.

He says a more detailed decision will be released within the next two days.

The Competition Tribunal held four weeks of hearings to discuss concerns about the proposed deal earlier this year.

Throughout the hearing, the Competition Bureau argued that the merger would reduce competition in the telecommunications market, drive up prices and lead to poor service.

Rogers and Shaw argued the deal would enhance competition and be better for consumers.

This report from The Canadian Press was first published on December 29, 2022.