The Court Gives Its Verdict On The Rogers-Shaw Merger – And Its Not What The Competition Bureau Wanted

Yesterday, the Federal Court gave its laldings on the controversial Rogers-Shaw merger. Long story short – it’s a thumbs up for the deal.

What Exactly Happened?

As part of the deal, Canada’s largest wireless carrier Rogers was hoping to buy Shaw, the largest cable provider in the country. But not everyone was on board. The Competition Bureau quickly objected to the merger, arguing that it threatened to reduce competition in the wireless market – which would lead to higher prices for consumers.

What Did The Court Have to Say About It?

The Federal Court disagreed with the Bureau’s stance. In a three-page ruling, they decided that the merger wouldn’t cause significant harm to competition, and that Rogers and Shaw should be allowed to go ahead with the deal.

So What Happens Now?

Rogers and Shaw are celebrating – although the clock is ticking. Under the terms of the agreement, they must complete their merger by January 8th 2021 or the deal will expire and they’ll be back to square one.

Anything Else?

Yes, there are a few things to keep in mind.

• It’s important to remember that the Bureau can still appeal the ruling.
• We may be seeing other mergers in the future, as it looks like the Court is more lenient on companies trying to create joint ventures.
• Consumers may still be looking at higher prices if the market isn’t competitive.

Of course, all of this is a bit like an episode of the courtroom drama series Law & Order. There’s been a lot of drama, but the court has made its decision and the verdict is finally in. We’ll see if there are any further appeals in the future – but one thing is for sure, this isn’t the last we’ve heard about the Rogers-Shaw merger.