The Competition Bureau responded to the tribunal’s decision in a brief statement Thursday.
But the tribunal rejected those arguments, saying the three-way arrangement stipulates that Shaw would first transfer Freedom to Videotron, and that Rogers would only then acquire the remainder of Shaw through an amalgamation arrangement. The tribunal also concluded that the merger and divestiture likely wouldn’t result in materially lower levels of non-price competition — namely service, quality, variety and innovation — relative to what would likely exist in the absence of the arrangement.
Freedom emerged as a sticking point, as the brand’s success was seen in Ottawa as proof that a fourth player could keep BCE’s Bell, Rogers and Telus on their toes. “Videotron is an experienced market disrupter that has achieved substantial success in Quebec,” the tribunal said. “It has drawn upon that experience to develop very detailed and fully costed plans for its entry into and expansion within the relevant markets in Alberta and British Columbia, as well as in Ontario.”Article contentlikely will be priced the same as what bundled offerings of Shaw Mobile and Freedom would have cost in the absence of the merger.
“It bears underscoring that there will continue to be four strong competitors in the wireless markets in Alberta and British Columbia, namely, Bell, Telus, Rogers and Videotron, just as there is today,” the ruling said.Article content
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