Competition Tribunal hearing shifts to potential cost savings generated by proposed Rogers-Shaw merger

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Competition Tribunal hearing shifts to potential cost savings generated by proposed Rogers-Shaw merger
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Cost savings, or efficiencies, are a critical issue because Canadian competition law allows a merger to close if it results in lower total costs for the businesses even if it lessens competition

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has shifted to the potential cost savings that would be generated by combining Canada’s two largest cable companies.

Shaw Communications wireless growth slows as company awaits verdict on $26-billion takeover by Rogers Earlier this month, Ottawa formally launched a review of Canada’s competition laws. The review will consider the scope of the Competition Act, whether additional penalties are needed and how competition policy should address digital and data-driven markets.

The companies would also save on administrative costs related to being a public company, such as director fees, audit fees and insurance costs, according to Mr. Harington’s report.that will be paid to Shaw executives from the efficiencies.

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What about the increased coststo consumers? The merged company will start raising prices shortly after to pay for this merger!

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