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Competition Bureau seeks to have Rogers-Shaw tribunal decision set aside

OTTAWA — The Competition Bureau is asking the Federal Court of Appeal to set aside a decision by the Competition Tribunal dismissing its case against Rogers Communications Inc.'s $26-billion takeover of Shaw Communications Inc.
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Rogers and Shaw applications are pictured on a cellphone in Ottawa on Monday, May 9, 2022. The Competition Bureau is asking the Federal Court of Appeal to set aside a decision by the Competition Tribunal dismissing its case against Rogers Communications Inc.'s $26-billion takeover of Shaw Communications Inc. THE CANADIAN PRESS/Sean Kilpatrick

OTTAWA — The Competition Bureau is asking the Federal Court of Appeal to set aside a decision by the Competition Tribunal dismissing its case against Rogers Communications Inc.'s $26-billion takeover of Shaw Communications Inc.

The federal competition regulator says the tribunal made a mistake in how it assessed the deal and the proposal that would see Quebecor Inc.'s Videotron acquire Shaw's Freedom Mobile business.

In seeking its appeal, the regulator says the tribunal made fundamental errors of law. 

In its ruling last week, the tribunal said the merger was not likely to result in higher prices for wireless customers and that it was satisfied the plan to sell Freedom Mobile was adequate to ensure competition isn't substantially reduced.

The bureau says the Federal Court of Appeal has issued a temporary suspension of the tribunal decision until the regulator's application for a stay and an injunction can be heard. 

The bureau had argued that the merger of the two telecommunications companies would lessen competition, trigger higher prices and lead to a worsening of service.

This report by The Canadian Press was first published Jan. 3, 2023.

Companies in this story: (TSX:RCI.B, TSX:SJR.B)

The Canadian Press