The Competition Tribunal’s rejection of the Competition Bureau’s attempts to block the telecom deal is raising questions about the bureau’s role and influence
had not yet announced their agreement to sell Shaw’s Freedom Mobile cellphone network to Videotron Ltd., owned by Quebecor Inc. Whether the tribunal would consider just the original deal, or include the Freedom divestiture, was hotly debated in the run-up to the hearings.
Jennifer Quaid, a law professor at the University of Ottawa, said the tribunal’s decision to consider the “modified case” likely has significant implications for the bureau’s persuasive power. “If you take that as the baseline starting point, then I think the capacity to make the anti-competitive arguments becomes a lot harder,” Prof. Quaid said.
“If the tribunal is of the view that a deal works because it’s already written down in contracts and enforceable contracts, all they have to do is dismiss the case. That’s what they did,” Mr. Osborne said. The efficiencies defence was expected to play a significant role in the legal proceedings, but in the end was not factored in because the tribunal decided there was no loss of competition as a result of the Freedom divestiture.
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