Thursday, May 29, 2025

Latest

Quebecor Goes After Loblaw’s Partnership With Bell And Rogers: “Major Cause Of Concern”

Quebecor has lodged a formal complaint with the Competition Bureau of Canada, challenging a new agreement between Loblaw Companies (TSX: L) and telecom giants Bell (TSX: BCE) and Rogers (TSX: RCI.B) through their joint venture, Glentel. This agreement grants exclusive selling rights at The Mobile Shop to Bell and Rogers, potentially excluding Quebecor’s Freedom Mobile from 180 Loblaw-owned grocery stores nationwide.

The company argues this move will significantly strengthen the already dominant telecom oligopoly, which would control 62.5% of all third-party retailers in the Canadian wireless industry if the deal proceeds.

Pierre Karl Péladeau, President and CEO of Quebecor, expressed serious concerns over the anti-competitive nature of the agreement. “The deal between Loblaw and Glentel cloaks yet another attempt by the dominant players in the telecommunications market to thwart competition,” Péladeau said. “There is no other oligopoly where two of the three main players are allowed to work hand in hand to exclude competitors from such an important retail channel.”

Péladeau added that “this new squeeze by Loblaw, a company currently under investigation by the Competition Bureau for anti-competitive tactics in the grocery industry, is a major cause for concern.”

Retail sales represent a crucial revenue stream for the Canadian wireless industry, with Quebecor estimating that over 80% of wireless product sales in 2023 occurred in-store. The Big 3—Bell, Rogers, and Telus—already dominate the market through third-party retailers like tbooth wireless and Wirelesswave. The new deal with Glentel could further entrench their control, raising the controlled retail market share from 49.5% to 62.5%, effectively marginalizing smaller competitors like Freedom Mobile.

This comes after NDP Leader Jagmeet Singh called for a thorough investigation by the Competition Bureau, describing the deal as a potential abuse of market dominance that would limit consumer choice and maintain high prices.

“Loblaws isn’t content just ripping off Canadians when it comes to their groceries. Loblaws is teaming up with Rogers and Bell to rip off Canadians with their cellphone prices,” Singh stated, emphasizing the need for regulatory oversight to protect consumer interests.

The Competition Bureau recently launched investigations into the parent companies of Loblaw and Sobeys, citing alleged anti-competitive practices. These investigations, which began on March 1, 2024, focus on the companies’ use of restrictive covenants and exclusivity clauses in their property leases, which are believed to limit competition in the grocery market.


Information for this story was found via the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

How To Profit From $3300 Gold? An Inside Look At A Massive 300,000 Oz Project | Martino De Ciccio

We’re At The Start of a Great Silver Boom | Ross McElroy & Andy Bowering – Apollo Silver Corp

Equinox Gold Q1 Earnings: When Everything Goes Wrong

Recommended

Sterling Metals Hits 0.21% Copper Over 482.8 Metres In First Drilling At Soo Copper project

First Majestic Makes Second Major Discovery At Santa Elena In Just A Year

Related News

Sobeys Expands Stock Buyback Program as Food Bank Demand Soars Across Canada

With Canada’s latest grocery inflation figure for May coming in at 9.0% and its food...

Wednesday, June 28, 2023, 07:39:00 AM

Rogers Layoffs Add to Growing Wave of Cuts in Canada’s Radio Sector

Rogers Sports & Media, a division of Rogers Communications (TSX: RCI.B), has announced layoffs affecting...

Thursday, November 21, 2024, 10:14:00 AM

Canada’s Grocery Costs and The Trudeau Tax “Solution”

Can Trudeau tax the teeth out of these grocery gougers’ gobs? Inflation jumped in August,...

Sunday, September 24, 2023, 09:00:00 AM

Rogers Expects Charges Of $150 Million From Outage Discounts

What’s the cost of an outage that brings a major portion of the economy to...

Wednesday, July 27, 2022, 10:42:48 AM

George Weston Reports Q2 Earnings Drop Following Bread Price-Fixing Settlement

George Weston Limited (TSX: WN) reported its unaudited financial results for the second quarter of...

Tuesday, July 30, 2024, 10:42:00 AM