Competition Tribunal Rejects The Bureau's Challenge Of The Rogers-Shaw Merger

The Competition Bureau lost its high-profile challenge of Rogers Communications Inc.'s acquisition of Shaw Communications Inc. The Competition Tribunal held that the Bureau's challenge ignored the parties' proposed divestiture of the most competitively contentious Shaw assets, the Freedom Mobile business, to a competitor, Videotron Inc. The Tribunal concluded that the Bureau's approach was "divorced from reality".

The Bureau is appealing its loss, and a hearing at the Federal Court of Appeal is set for January 24. The merger remains on pause pending the outcome of the appeal.

Decision of the Tribunal

Post-challenge agreements between parties may be considered

The Bureau's case focused on the harm to wireless customers in Ontario, Alberta and B.C. from Rogers acquiring Freedom Mobile and Shaw Mobile, and blocking the whole deal would best preserve competition. However, the key issue at the Tribunal hearing was whether the Tribunal could consider a