Competition Bureau, Rogers and Shaw to participate in tribunal mediation

The mediation will take place on July 4th and 5th, Reuters reports

Rogers and Shaw logos on an iPhone

Rogers, Shaw, and the Competition Bureau have agreed to take part in a mediation process over the two companies’ $26-billion merger.

The tribunal told Reuters the mediation will take place on July 4th and 5th and will be confidential.

The Commissioner of Competition filed an application to block the merger in May, stating the move would decrease competition and lead to pricier wireless services.

The bureau also said the sale of Shaw’s wireless business, Freedom Mobile, to create a fourth competitor in the wireless market won’t be enough to address competition concerns.

Rogers announced it would sell Freedom Mobile to Québecor Inc. for $2.85-billion, but the deal won’t be finalized until it receives regulatory approval.

Both Shaw and Rogers filed responses asking the tribunal to dismiss the commissioner’s application. Shaw’s response stated that the commissioner’s application is based on “fundamental misconceptions” about its business. Rogers called the bureau’s rejection of the sale of Freedom Mobile “unreasonable” and “not supportable at law.”

Source: Reuters