The president and CEO of Quebecor is urging Ottawa to intervene in what he calls an “anti-competitive” agreement between Loblaw Companies and telecommunications services retailer Glentel that would end Freedom Mobile’s presence in points of sale. sale of the Canadian food giant.
In a letter dated May 9 addressed to the Minister of Industry, François-Philippe Champagne, and seen by The Canadian Press, the CEO of Quebecor, Pierre Karl Péladeau, alleges that Loblaw “made the decision to terminate premature” to a supply deal between the chain’s in-store kiosks, known as The Mobile Shop, and telecommunications subsidiary Freedom Mobile.
Mr. Péladeau says the grocer is instead partnering with Glentel, which is jointly owned by Rogers Communications and Bell Canada and which operates stores such as Wireless Wave and Tbooth Wireless.
PHOTO SEAN KILPATRICK, CANADIAN PRESS ARCHIVES
Federal Minister of Industry François-Philippe Champagne
The senior executive of Quebecor argues that Loblaw presents this decision “as a simple choice of supply for its stores”. But “it is rather, according to our information, an approach aimed at excluding certain other cellular telephone operators to favor the Glentel company,” maintains Mr. Péladeau.
“This is why we are requesting your direct and firm intervention towards Loblaw, Glentel, Bell and Rogers and their anti-competitive maneuvers,” writes the Quebec businessman.
It is imperative that measures be taken to preserve an environment of fair competition in the telecommunications and grocery sectors, in the best interests of Canadians.
Extract from the letter from Pierre Karl Péladeau
The Mobile Shop defends itself
The Mobile Shop is available in 180 Loblaw-owned grocery stores across Canada and currently lists packages offered by the top four Canadian suppliers or their subsidiaries on its website.
In a statement, The Mobile Shop maintained that it represented less than 5% of sales of mobile phones and plans in Canada, also emphasizing that it was not present in Quebec.
“Given our limited presence in the mobile market, our decision on which operators to sell has absolutely no effect on competition,” said Daksa Mody, senior vice president and chief operating officer of PC Financial and Services.
Loblaw currently has no agreement in place requiring The Mobile Shop to purchase or offer a Quebecor product in its stores, says Mme Mody.
We launched a competitive process with all suppliers, asking them for different scenarios. Quebecor chose not to participate fully.
Daksa Mody, Senior Vice President and Chief Operating Officer of PC Financial and Services
When questioned, Quebecor did not specify when its contract was supposed to end or in what time frame it had been told that the contract would be terminated. The company also did not specify whether it had received a response from the minister.
Contact the Competition Bureau
For its part, Mr. Champagne’s office indicated that the minister could not direct an investigation into this matter.
“It would have been preferable to address the letter to the Competition Bureau, since the commissioner has the power to launch investigations,” said spokesperson Audrey Milette.
Quebecor did not say whether it had contacted the competition watchdog.
In 2015, the bureau reached an agreement with Rogers and Bell that it said addressed concerns about the Glentel acquisition. The bureau previously warned that the acquisition would “likely have the effect of significantly lessening competition in the wireless sector.”
But Rogers, Bell and Glentel agreed to put in place “administrative firewalls” that prevented the sharing of subscriber information, prices and promotional offers.
The competition watchdog said the conditions were necessary to ensure the transaction did not give either operator the opportunity to share confidential information that could lead to consumers paying higher prices. for wireless products and services.
Mr. Péladeau has gone on the offensive this month regarding concerns about competition in the telephone and internet sectors.
“The incumbents will do everything to protect their monopoly for as long as possible, in defiance of government policy,” he declared during the annual general meeting of Quebecor, which was held the same day as the sending of his letter to Minister Champagne.
“We are ready to make all necessary efforts to stimulate the market. For us to continue to play our role as a strong fourth player, the big three’s constant obstruction of any form of competition must end,” he said.
Loblaw, for its part, has recently made other decisions in the telecommunications sector.
Last month, the grocer launched low-cost mobile phone plans under its No Name brand, offering prepaid mobile SIM cards for purchase at all No Frills stores nationwide.
The new No Name Mobile cell phone plans are powered by its carrier PC Mobile, which has been around since 2005 and operates on Bell’s network.