Sale of Freedom to Videotron would weaken company, Competition Tribunal hears - BNN Bloomberg

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A consultant says selling Freedom Mobile to Quebecor-owned Videotron would lessen competition in the telecom market in arguments before the Competition Tribunal about Rogers' $26-billion proposed takeover of Shaw.

A consultant says selling Freedom Mobile to Quebecor Inc.-owned Videotron Ltd. would lessen competition in the telecom market in arguments before the Competition Tribunal about Rogers Communications Inc.'s $26-billion proposed takeover of Shaw Communications Inc.

He also said the new Freedom would lose distribution advantages, including access to Shaw's distribution channels and brand awareness. Videotron also argued that it is a strong purchaser of Freedom partly because it acquired 3,500 MHz spectrum in July 2021, has obtained a discount on wholesale access and has obtained favourable arrangements on roaming charges.

"But it's a big risk, essentially all of which falls on Canadian consumers and the Canadian economy, whereas the merger benefits, to the extent that there are any, fall predominantly to the owners of the three companies involved.

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