Canada’s approval of major telecoms takeover condemned as ‘dark day’
Canada has approved a major telecoms takeover that would create a media and sports behemoth in an already concentrated media landscape, in a landmark deal that anti-monopoly consumer groups slammed as “a dark day” for competition in Canada.
On Friday the industry minister, François-Philippe Champagne, said he had approved a multibillion-dollar takeover of Shaw by Rogers.
The $20bn deal, first proposed in 2021, combines Canada’s two largest cable television networks. The deal further entrenches Rogers as the country’s second largest cable, telecommunications and entertainment company.
Canadians already pay some of the highest mobile rates in the world, with a Finnish study from 2021 finding that Canada’s prices were largely the result of minimal competition.
Champagne initially blocked the takeover in October as the acquisition would have eliminated Freedom Mobile, Canada’s fourth-largest wireless carrier. As part of the new deal, however, Shaw will sell Freedom Mobile to Quebec-based Videotron for C$2.85bn (US$2.1bn; £1.7bn).
“This transfer follows a series of agreements signed by the parties that will ensure that this new national fourth player will be in it for the long haul, be able to go toe to toe with the big three [telecoms companies], and actually drive down prices across Canada,” Champagne told reporters.
Champagne told reporters on Friday he had secured “unprecedented and legally binding commitments” from the companies, which he would watch like a “hawk”. As part of the approvals, Champagne asked for promises from Rogers to invest in rural internet access and 5G wireless services, and from Videotron to reduce its wireless prices to ensure Freedom’s plans cost 20% less than those offered by the major wireless
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