According to a report by the Globe and Mail, the Competition Bureau filed an updated appeal to the Federal Court of Appeals on Friday, claiming two more legal errors in the Competition Tribunal’s decision to approve Rogers C$26 billion takeover of Shaw.
The bureau is arguing that the tribunal should have taken into consideration the deal between Rogers and Shaw on its own instead of also considering the preconditional sale of Shaw’s subsidiary wireless carrier company, Freedom Mobile, to Quebec-based telco, Québecor.
However, the tribunal maintained that if it had analyzed the merger as the bureau wanted, its decision, rendered on Dec. 29, would have been the same.
The bureau is arguing that the tribunal has not explained why the decision would have been the same, hence the legal error.
Additionally, the bureau claimed that the tribunal incorrectly applied the legal test for mergers, failing to take into account the extent of service price increases, the duration and scope of the effects of the merger.
These arguments add to the bureau’s initial appeal, filed on Dec. 31, that accused the tribunal of acting outside its jurisdiction by considering the divestiture of Freedom Mobile alongside the original deal, and that it did so without the consent of the Bureau.
The bureau will face Rogers and Shaw at the Federal Court of Appeal on Jan. 24, one week before the Jan. 31 closing deadline set by the companies.
The bureau must file its written arguments by Jan. 13, and the telcos must file theirs by Jan. 17.
