Why the Competition Bureau is taking the Rogers-Shaw merger to court

, arguing that a merger of Canada’s two largest cable companies would reduce competition and result in higher cell phone bills, poorer service, and less choice for consumers.

In order to avoid eliminating a wireless competitor, and hoping to address the Competition Bureau’s concerns, Rogers and Shaw agreed to sell Shaw’s Freedom Mobile to Quebecor’s Videotron as part of the deal in June. in Alberta and B.C., because Quebecor and other potential buyers of Freedom refused to bid on the division.Despite Rogers and Shaw agreeing to sell Freedom Mobile to a competitor, the Competition Bureau opposes the merger.in the Competition Tribunal, the agency argued that Freedom would come out of a sale as a weakened competitor because Rogers would acquire a number of Shaw’s assets such as infrastructure and personnel.

TL:DR: It sucks. Both of these companies are saying that less competition is better for consumers. You don't even need to take Business 101 to know how wrong that is.

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