The Competition Bureau says Rogers Communications Inc. and Shaw Communications Inc. have agreed to a preliminary ban preventing them from completing their proposed $ 26 billion merger until the Competition Court hears a challenge from the commissioner.
The regulatory agency says Rodgers and Shaw also agreed to the Competition Commissioner’s request for an accelerated hearing before the tribunal.
On May 9, the bureau filed an application to block Shaw’s purchase from Rodgers, arguing that the deal would lead to poorer service and higher prices for consumers.
He also argues that the elimination of Shaw as a competitor will undo the progress made in competition in Canada’s telecommunications sector over the years.
Rodgers and Shaw said they would continue the deal and fight the commissioner’s efforts to block it.
Other government agencies, including the CRTC, have already signed parts of the deal under certain conditions, but resistance from the Competition Bureau is emerging as an unexpectedly big stumbling block.
In March, Industry Minister Francois-Philippe Champagne made it clear that the government would not allow the merger to continue if it meant Rodgers would retain all of Shaw’s wireless spectrum licenses, most of which consisted of Freedom Mobile and its approximate two million mobile phone customers. in Ontario, British Columbia and Alberta.
The Ministry of Champagne has also not yet signed the deal.
According to the bureau, Rodgers has agreed not to do anything “that limits Shaw’s ability to operate, maintain, improve or expand his wireless business.”
A Rodgers spokesman did not immediately respond to a request for comment from CBC News on Monday.
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