Competition Bureau looking to block $26B Rogers-Shaw merger

The Competition Bureau says is seeking to block Rogers Communications Inc.’s proposed $26-billion acquisition of Shaw Communications Inc.

According to the federal regulator, the deal proposed would result in higher prices, lower quality service, and fewer options, particularly for wireless services.

It says it is asking the Competition Tribunal to prevent the deal from proceeding, as well as asking for an injunction to stop the two companies from closing the deal until the Bureau’s application can be heard.

The Competition Bureau says Shaw’s presence in the wireless market has added significantly to competition in recent years, but that its efforts have already started to backslide since the deal was announced last year.

Shaw and Rogers both said over the weekend they plan to press ahead with the deal and fight the commissioner’s efforts to block it.

The Competition Bureau is one the three regulatory bodies that must approve the deal. The Canadian Radio-Television and Telecommunications Commission has signed off earlier this summer, while the companies still await approval from Innovation, Science and Economic Development Canada.