Skip to content

Rogers outage relevant to approval of $26B Shaw deal, Competition Tribunal rules

People use electronics outside a coffee shop in Toronto amid a nationwide Rogers outage, affecting many of the telecommunication company's services, Friday, July 8, 2022. THE CANADIAN PRESS/Cole Burston

OTTAWA — Canada's Competition Tribunal has ruled that the Rogers Communications Inc. July 8 service outage is relevant to the upcoming hearings on the telecom giant's $26-billion takeover of Shaw Communications Inc.

The ruling was made Friday after hearing submissions from Rogers and the Commissioner of Competition on the matter.

The outage affected millions of Canadians, and to make sure it doesn't happen again, Rogers is committing $10 billion over three years on network upgrades and will spend $150 million on customer credits.

The ruling comes after Rogers released a commercial last week outlining what it is doing to earn back the trust of Canadians.

In a separate court document filed on Aug. 15 and made available to the public Monday, the Competition Bureau says the proposed sale of Shaw-owned wireless carrier Freedom Mobile to Quebecor Inc.'s Videotron Ltd. is not an "effective remedy" as it "fails to eliminate the substantial lessening and prevention of competition" the transaction could cause.

Rogers intends to sell Freedom to Quebecor for $2.85 billion, in the hopes that the move will appease the concerns of federal regulators regarding its proposed takeover of Shaw.

This report by The Canadian Press was first published Aug. 29, 2022.

Companies in this story: (TSX:RCI.B, TSX:SJR.B, TSX:QBR.B)

The Canadian Press

Note to readers: This is a corrected story. A previous version incorrectly attributed remarks made by the Competition Bureau about the sale of Freedom Mobile.

Looking for National Business News? viewed on a mobile phone

Check out Village Report - the news that matters most to Canada, updated throughout the day.  Or, subscribe to Village Report's free newsletter: a compilation of the news you need to know, sent to your inbox at 6AM.