OTTAWA –
The Competition Court has rejected an application from Canada’s competition watchdog seeking to block a proposed purchase of Shaw Communications Inc. $26 billion of Rogers Communications Inc., clearing the way for the deal to pass.
It still needs Innovation, Science and Economic Development Canada approval.
In a summary of the decision released on Thursday, the Court said that merging the two telecommunications companies would not result in significantly higher prices.
The decision said the deal included the sale of Shaw-owned Freedom Mobile to Videotron Ltd. owned by Quebecor would not be able to prevent or substantially reduce competition.
It said a more detailed decision would be made in the next two days.
The Competition Court held four weeks of hearings to discuss concerns about the proposed settlement earlier this year.
During the hearing, the Competition Bureau argued that the merger would reduce competition in the telecommunications market, drive prices higher and lead to poor service.
Rogers and Shaw argue that the deal will enhance competition and be better for consumers.
This report by The Canadian Press was first published on December 29, 2022.
