Competition Bureau is likely to lose its appeal in Rogers-Shaw takeover
including Freedom Mobile, a stand-alone mobile carrier. But just over a month after the Commissioner challenged the deal, Rogers and Shaw agreed to sell Freedom Mobile to Videotron Ltd. Crucially, Shaw will sell Freedom to Videotron first, before Rogers buys Shaw. As a result, Rogers will never own Freedom.
But would the result have been any different had the tribunal used the two-step process proposed by the Commissioner? Central to the Commissioner’s case was the theory that Freedom could not compete were it cut off from Shaw’s wireline network. The tribunal found that the evidence did not support this contention. Bell and Telus both compete effectively in areas where they do not own a wireline network – Bell in Western Canada, Telus in Eastern Canada. As well, the Commissioner’s own expert predicted that Videotron would reduce Freedom’s prices by more than 15 per cent.
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