Ed Scholz Recap of Dangers
The $26 billion merger between Rogers and Shaw, combined with the associated side deal with Videotron, is a bad deal for Canada. The confidence displayed by the CEOs of the companies during the recent parliamentary hearings is concerning.
Testifying before the House of Commons, Rogers CEO Tony Staffieri was grilled by Liberal MP Nathaniel Erskine-Smith over why they chose Videotron as the buyer of Freedom Mobile, despite a higher bid from Toronto-based Globalive. Staffieri pointed to criteria set by the Minister of Innovation, Science and Industry François-Philippe Champagne.
Quebecor CEO Pierre Karl Péladeau bragged about the anti-competitive side deal with Rogers, which is being challenged as illegal by TekSavvy. The deal would allow Rogers and Videotron to fix rates and eliminate competition. The Quebecor CEO dismissed the CRTC as irrelevant, but the Minister made it clear he will not approve the merger without legal clarity, including the challenge at the CRTC.
The public opposition to this merger is widespread, as it will result in higher prices for millions of Canadians and job losses. The only ones who will benefit are the billionaire owners of Rogers, Shaw, and Videotron.
Minister Champagne must reject the merger or impose conditions that will solve the CRTC challenge and level the playing field. Everything about this deal appears to be gold for Rogers and garbage for Canadians.
