Canada: Minister of Innovation, Science and Industry approves Rogers-Shaw Merger

On 31 March 2023, the Canadian Minister of Innovation, Science and Industry approved the merger between Rogers Communications Inc. and Shaw Communications Inc. The Minister concluded that due to numerous legally enforceable commitments imposed on Rogers and Vidéotron, the deal is likely not to harm competition. If Rogers breaches its conditions, it would be subject to a fine of CAD 1 billion. Vidéotron would, on the other hand, pay CAD 200 million if it fails to meet its commitments. Previously, the Competition Tribunal and the Federal Court of Appeal rejected the Competition Bureau's attempts to block the merger. The central issue before the Competition Tribunal was whether Rogers's acquisition of Shaw, with the assumption of Shaw's subsidiary Freedom Mobile being sold to Vidéotron prior to closing the sale to Rogers, would have a substantial lessening or prevention of competition in the wireless telecommunications services sector in Alberta and British Columbia. Specifically, the Competition Tribunal evaluated the likelihood of material increases in prices or harm to non-price aspects of competition, such as service quality, variety, or innovation. After careful consideration, the Competition Tribunal determined that the proposed transaction would not likely have such effects and would not result in a significant lessening or prevention of competition. Consequently, the Competition Tribunal dismissed the case.