Telus and IBG row in behind NPF-PIAC petition against Rogers-Shaw CRTC approval

A joint petition to cabinet from the National Pensioners Federation and the Public Interest Advocacy Centre (NPF-PIAC) to overturn the CRTC's approval of the broadcast elements of the Rogers Communications Inc. acquisition of Shaw Communications Inc. has gained some support from from an unlikely ally: one of the biggest telecom companies in the country. In a May 6 letter in support of the NPF-PIAC petition, Telus Corp. wrote that the cabinet should intervene on the CRTC's decision because the regulator's approval of the transfer would "undermine competition in the broadcast sector; undermine the welfare of consumers and lead to less innovation in the broadcasting market; and reduce the ability of consumers to access programming on the platform of their choice, with the service provider of their choice." In its intervention, Telus wrote that the merger of the two parties in the broadcasting sector would give Rogers a new level of market power, which the company could then use to pursue content exclusivity and crowd out its competitors. What's more, CRTC powers are unable to stop that, Telus wrote. "Existing regulatory mechanisms struggle to manage the effects of vertical integration today, and will be grossly inadequate to govern anti-competitive conduct by Rogers following this transaction," the company wrote. That the regulatory process is plagued by "excessive delay and uncertainty, and favours vertically integrated entities that engage in anti-competitive behaviour," Telus added, will only worsen the fact that Rogers' commitments as part of the approval process are largely unenforceable. While the NPF-PIAC petition awaits a decision, Telus has asked the government to require Rogers and Shaw to refrain from closing the acquisition deal. "Given the size of this transaction, and the potential it has to irreparably harm the Canadian broadcasting system," the company wrote, "the Governor in Council ought to have an opportunity to consider the important issues raised by this appeal and issue a decision before any further steps are taken." The petition has also gained support from the Independent Broadcast Group (IBG), who in its own May 6 letter of support for the petition wrote that while it did not oppose the transaction during hearings before the CRTC, did call for "for the strictest of safeguards." The conditions imposed on the CRTC's approval are inadequate, and the regulator's reasoning for not imposing stricter safeguards "does not hold water," the IBG wrote, and added that it feels enforceable safeguards on carriage terms are essential. The IBG petition calls on the cabinet to "make the development of a new policy framework supporting independent programming services a priority, and place a moratorium on packaging changes without consent until the Commission can complete its review." In addition, the IBG asked the cabinet to mandate particular protections for independent broadcasters, and impose a prohibition "on dropping channels, imposing punitive or retaliatory measures, imposing unreasonable rates, significantly changing packaging or otherwise materially reducing wholesale payments." – Reporting by Michael Lee-Murphy at mleemurphy@thewirereport.ca and editing by Paul Park at ppark@thewirereport.ca

Telus and IBG row in behind NPF-PIAC petition against Rogers-Shaw CRTC approval

News | May 10, 2022

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Telus and IBG row in behind NPF-PIAC petition against Rogers-Shaw CRTC approval

News | May 10, 2022

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