Pixel Envy

Written by Nick Heer.

Competition Bureau Wants to Block Rogers–Shaw Merger on Wireless Basis Alone

The Competition Bureau earlier this week released a statement objecting to the merger of Rogers and Shaw, to which the providers preemptively responded. Unfortunately, it is entirely focused on the wireless space, which makes sense given the two companies’ firewall avoiding competing in cable TV or internet:

The Bureau’s investigation concluded that the proposed merger would substantially prevent or lessen competition in wireless services.

The Bureau is challenging the merger to shield Canadians from higher prices, poorer service quality and fewer choices which are likely to occur as a result of the merger.

The two providers say they are prepared to jettison Shaw’s wireless division, thereby resolving the Bureau’s concerns.

It is too bad the Bureau cannot seem to nullify the longstanding non-competition agreement between Rogers and Shaw. It cannot force them to compete in the same markets, but it should not permit such a blatant divvying up of the country.