After the approval of Rogers acquiring rival Shaw, the federal government promised it will bring in legislation to reduce internet fees if telecom companies do not lower prices, but Opposition MPs are skeptical consumers would benefit from the merger.
Industry Minister François-Philippe Champagne approved the sale of Calgary’s Shaw Communications to Toronto-based Rogers on March 31, even after objections from the Commons heritage committee, industry committee, and the Competition Bureau, according to Blacklock’s Reporter.
Champagne told reporters that “the intention is to have lower prices in Canada.”
“Canadians have been very, very clear with me,” said Champagne. “Indeed the message I hear from Canadians everywhere I go is the same: We pay way too much for telecom services and we want more options, full stop.”
Champagne was asked why the government is allowing the takeover.
“Why is your government allowing this anti-competitive behaviour in one of our most important industries?” asked a reporter.
“I would say, you know, what Canadians have told me is very simple,” replied Champagne. “You have to go back to the frame. What they want is lower prices.”
The Competition Bureau said on Jan. 25 the buyout of Shaw was “likely to substantially lessen competition” and impact customers.
“We were concerned about all of those consumers,” testified Jeanne Pratt, senior deputy commissioner with the Competition Bureau, at the Commons industry committee.
Champagne was also asked by reporters what he would do if telecom companies did not cut prices.
“What we will do then, is that I will ask for more legislative and regulatory powers to be able to force a drop in prices in Canada,” he replied. “At that point, everything is on the table.” He did not provide further details.
Opposition Leader Pierre Poilievre was critical of the claim that consumers would benefit from the takeover.
“They announced they think there is too much competition in the wireless and internet business and they allowed for a massive merger,” he said during question period in the House of Commons.
“When will the Liberals start standing up for consumers instead of standing up for price-raising, high-cost corporate oligarchs?”
NDP MP Brian Masse called the merger “a Frankenstein deal” that “left Canadian consumers to the buzzards.”
Another NDP MP, Peter Julian, said it was consumer fraud. “Rogers and Shaw continue defrauding Canadians on their internet and cellphone bills,” he said.
Conservative MP Rick Perkins accused cabinet of being “in the back pocket of Rogers.”
“The Minister only needs to check the Lobbyist Registry to see more than 65 meetings with his department and the Prime Minister” by Rogers lobbyists, he alleged.
Open Media, a consumer advocacy group based in Vancouver, said the decision was “the largest blow to telecommunications competition and affordability we’ve ever seen.”
“This is a dark day for internet in Canada,” said executive director Laura Tribe.
According to Canadian Radio-television and Telecommunications Commission statistics, Canadians pay $1,242 on average per year for high-speed home internet, and over $1,000 a year for mobile phone data plans.
