The Competition Bureau has filed court applications to block the proposed merger of Rogers Communications and Shaw Communications, valued at $26 billion.
The regulator on Monday asked the Competition Tribunal to block the deal from going ahead because it believes eliminating Shaw as a competitor would jeopardize the significant progress the company has made. has done to increase competition in an already concentrated market.
According to the Competition Bureau, the merger of the two companies would lead to price increases, a reduction in the quality of service and a loss of choice, particularly with regard to wireless services.
The organization further sought an injunction to prevent the parties from completing the transaction until its request is heard.
According to the Competition Bureau, Shaw’s presence in the wireless market has contributed significantly to competition in recent years, but that since the announcement of the agreement with Rogers, its efforts have already begun to diminish .
Both Rogers and Shaw have indicated in recent days that they intend to move forward with their transaction and oppose the competition commissioner’s efforts to block it.
The Competition Bureau is one of three regulatory agencies whose approval was required for the deal to proceed. The Canadian Radio-television and Telecommunications Commission (CRTC) already ruled on the deal earlier this year, and the two companies are also awaiting a decision from Innovation, Science and Economic Development Canada (ISED).
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