`Reality check' needed as Shaw-Rogers hearings come to close
The hearing convened to determine the fate of Rogers Communications Inc. and Shaw Communications Inc.'s merger came to a close on Wednesday, with a highly anticipated decision from the Competition Tribunal expected within the month.
The final arguments concluded with representatives from Rogers, Shaw and Vidéotron Ltd. attempting to persuade the three-member tribunal of the benefits of the planned merger and what they perceived were flaws in the arguments of the Competition Bureau, which is trying to block the acquisition.
Kent Thomson, a lawyer for Shaw Communications, said Wednesday that the Competition Bureau's case against the company's proposed merger with Rogers Communications is built on false assumptions and not based in reality.
In closing arguments, Thomson said that the assumptions and evidence about the market share of Shaw's mobile operations put forth by the regulator and the prospects for future profitability of the business don't stand up to the evidence.
“It's incumbent upon this tribunal to step back and do a reality check,” he said.
He focused on the conclusions of Nathan Miller, a Georgetown University professor who compiled a report opposing the deal, which the regulator cited in its closing arguments.
Thomson said Miller considerably inflated the market share of Shaw's mobile division in his report, which helped form the basis of his opposition.
The respondents — Roger and Shaw — are riding on Quebecor Inc. subsidiary Vidéotron's $2.85-billion purchase of Shaw's Freedom Mobile, a divestiture they hope will allay concerns about reduced competition stemming from the merger.
The tribunal commenced on Nov. 7 and has heard from 45 witnesses over four weeks, including executives of Canada's largest telecommunications companies, including BCE Inc.'s Bell and Telus Corp., as well as academic and industry experts.
Analysts expect the proposed $26-billion deal between Rogers and Shaw to close in the first half of 2023 should the tribunal decide it can go ahead.
An appeal process after the tribunal's decision is also possible.