Canada's Competition Tribunal fails Canadians once again, prioritizes telecom oligopoly amidst threat of economic recession

TORONTO, Dec. 30, 2022 /CNW/ - Following the December 29 announcement from Canada's Competition Tribunal allowing the Rogers/Shaw merger to proceed, Globalive today issued the following statement:

"Sadly, it's no surprise that the Competition Act, which has failed to protect Canadians from every anti-competitive merger for the past 40 years, has failed us yet again. The government must step in to stop this merger, and oversee a fair, open, and transparent process to sell the Freedom Mobile wireless assets and ensure the best outcome for Canadians.

Anyone familiar with the Canadian telecom industry is aware that allowing Rogers to acquire Shaw will lead to even greater industry concentration, lessened competition, and, ultimately, even higher prices for Canadians. Many of these experts have been consistently outspoken about the blatant issues of this merger and the subsequent impact it will have on Canadians from coast-to-coast.

The facts of this case are clear: the current Competition Act is overwhelmingly ineffective (hence its pending overhaul following the current Rogers/Shaw proceedings); Canada's competition watchdog, Commissioner Matthew Boswell, initially rejected the merger because it will hurt Canadian consumers and national industry competition; and a majority of widely-respected industry experts have submitted their own similar, unbiased opinion that Canadians will suffer should this move forward.

It should also be noted that an overwhelming majority of key stakeholders oppose the merger, including:

• 8 out of 10 Canadians and 9 out of 10 Rogers/Shaw customers (via Angus Reid polling)
• The Competition Bureau, which is fighting the merger as best they can under the old Act
• INDU and Heritage Standing Committees
• Liberal caucus members in Ontario, BC, and Alberta - which are the most directly affected consumer markets
• Conservatives and NDP across Canada

Yet, Canada's Competition Tribunal will allow it to proceed.

The approval of this merger will mean a massive wealth transfer from consumers in Ontario, British Columbia, and Alberta to the three billionaire families behind Rogers, Shaw, and Videotron. As we move into the new year, with economic challenges plaguing millions of Canadians and the looming threat of a recession, we are, once again, witnessing a powerful Canadian oligopoly get its way, with profits in the billions awaiting them at the finish line.

In line with the actions of Commissioner Matthew Boswell, we call on Minister Champagne to side with Canadians rather than bow to pressure from the Canadian telecom oligopoly, which has been cashing in on the backs of Canadians for decades."

About Globalive

Globalive has founded or co-founded and operated 12 operating companies over the past 25 years in the telecommunications industry, including WIND Mobile which was sold to Shaw Communications for $1.6 billion. Globalive Capital manages Globalive's diversified investment portfolio across multiple asset classes including venture, private equity, real estate, and infrastructure. Globalive Ventures has made over 125 early-stage technology venture investments and is well-known as a strategic, entrepreneur friendly investor. Globalive has been a founding sponsor of leading incubators and accelerators including NEXT Canada and the Creative Destruction Lab, and the Globalive team serves as directors and advisors across the startup ecosystem. Globalive Media focuses on the innovation ecosystem and produces the show Beyond Innovation (beyondinnovation.tv) that airs globally on the Bloomberg platform. For more information, visit www.globalive.com.

SOURCE Globalive Capital

Cheyenne Freitas, [email protected], 647-985-4806