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Robin Shaban is principal at Vivic Research, an economic consulting firm that provides data-driven research for policy makers and advocates.
Rogers and Shaw issued a joint communique on Monday announcing their intent to merge, a deal totalling $26-billion, including debt. The two companies also claim the merger will create $1-billion a year in synergies within
two years after it
is finalized.
Their synergies claim is interesting because, if upheld, it will severely hamper the Competition Bureau’s ability to take meaningful action to protect competition in the industry, further contributing to the high prices Canadians pay for telecommunications services. The core problem is Canada’s so-called efficiencies defence for mergers, contained in Section 96 of the Competition Act.