Financial analyst Robert Levy breaks down what a grocery code of conduct looks like and if it will keep prices down for shoppers. We'll also hear about a looming rail strike and how the TSX is on the rebound.
News of the partnership emerged after the head of telecom company Quebecor sent a letter on May 9, asking Ottawa to stop the deal, which he says would drive his company out of Loblaw-owned grocery stores.Quebecor CEO Pierre Péladeau wrote to Industry Minister Francois Phillipe Champagne, saying Loblaw has decided to “prematurely end” its contract to sell Freedom Mobile products inside its supermarkets.
Quebecor acquired Freedom Mobile last year and offered wireless devices and services at in-store kiosks known as the Mobile Shop, located inside 180 Loblaw-owned stores across Canada.According to Péladeau, the grocery giant is partnering with Glentel instead, a retailer owned by Rogers and Bell, which operates stores like Wireless Wave and Tbooth Wireless.
The Quebecor CEO says Loblaw described the move as a routine decision, but Péladeau insists it’s “designed to exclude some carriers in favour of Glentel.”He’s slamming the partnership as “anticompetitive” and wants the industry minister to step in. But Champagne said Péladeau’s letter would be better addressed to the Competition Bureau.