Competition Bureau closes probe

The Competition Bureau has closed an investigation into a 2017 newspaper swap between Postmedia Network Canada Corp. and Torstar Corp., concluding “no further action” is warranted. The transaction saw the newspaper groups swap 41 community and daily newspapers, 36 of which were subsequently closed.

The Competition Bureau was probing whether Postmedia and Torstar had agreed to close titles and not compete in certain regions as part of the transaction. “Following a review of the available evidence, the Bureau concluded that no further action was warranted,” the competition watchdog said in a statement Thursday. “To refer a case for prosecution under the criminal conspiracy provisions of the Competition Act, the Bureau must find clear evidence demonstrating that competitors reached an agreement to fix prices, allocate markets, or lessen or eliminate the supply of a product or service.”

In a statement, Postmedia president and chief executive Andrew MacLeod said the company was happy to have the matter resolved. “From the outset we have adamantly maintained that Postmedia has done nothing wrong and now, more than two years later, the Competition Bureau has closed the investigation,” MacLeod said. “We are happy to have this matter and the associated pressure and cost behind us and look forward to continuing the important work of keeping Canadians informed with ambitious, trusted and high-quality journalism and delivering high-value and data-driven marketing solutions to businesses and advertisers. We will continue to urge the Bureau to apply its considerable resources to address the impacts of foreign digital monopolies on our industry and others in Canada.” The watchdog's investigation included searches of the offices of Postmedia, which publishes the National Post and numerous other newspapers across the country, and the offices of Toronto Star owner Torstar and its subsidiary Metroland. The Bureau also obtained a court order in late 2018 requiring five Torstar employees and one former employee to be examined under oath by its investigators.