Competition Bureau says changes to cost awards will ‘go a long way’ after it paid millions fighting Rogers-Shaw acquisition

The Competition Bureau is “welcoming” a proposed amendment to the Competition Tribunal Act that would save it from paying costs in many circumstances.

The amendment is part of Bill C-59 and focuses on the power the Competition Tribunal has in asking the federal agency to pay costs when it’s not successful in blocking a merger.

The proposed amendment comes after the Competition Bureau had to pay $12.9 million in costs for trying to block Rogers’ acquisition of Shaw.

“We are very welcoming of the proposed amendments in Bill C-59, which would immunize the Commissioner from cost awards to the extent that we are bringing a case in the public interest,” Jeanne Pratt, the senior deputy commissioner of the mergers and monopolistic practices branch, told members of the industry committee on Monday.

“That goes a long way to addressing any potential chilling impact that the cost awards could have on us bringing cases before the tribunal.”

Pratt said the costs associated with the Rogers Shaw acquisition did not impact the Competition Bureau’s operations.

In its decision, the Competiton Tribunal said the bureau took part in an “unnecessary” approach and was unwilling to focus on the sale of Freedom Mobile to Vidéotron.

During the Monday meeting, Pratt also told MPs that some cellphone plans in Western Canada cost more after the merger.

“So far, we haven’t seen any information that would suggest that Rogers is offering comparable pricing to Shaw Mobile post-transaction, so that is of a concern,” Pratt said.

Rogers has noted it’s unclear what plans Pratt referred to as none of its plans, including the ones it offers in Western Canada, cost more than before the merger.

The Toronto-based telecom giant raised the cost of mobile services for some, including Fido customers. Shaw internet and TV customers also saw a price hike. Bell customers also had to pay more for some services.

Rogers completed its $26 billion acquisition of Shaw on April 3rd, 2023.

Image credit: Shutterstock

Source: Standing Committee on Industry and Technology Via: Cartt