Government should have listened to critics of Rogers' Shaw takeover says MP

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Central Okanagan-Similkameen-Nicola MP Dan Albas

In January 2023, I wrote about the then-proposed takeover of Shaw Communications by Rogers Communications.

At that time, the proposed takeover was studied by the Parliamentary Committee on Industry and Technology, which ultimately recommended the merger should not proceed. The final decision to approve or reject the deal fell to Innovation, Science and Industry Minister François-Philippe Champagne, the MP for Saint-Maurice-Champlain in Quebec.

At the time, opponents of the proposed deal were concerned it would result in less competition in an industry that already offered little choice for Canadian consumers. Many feared it would lead to reduced competition and higher prices.

As is often the case with the (current) Liberal government, it ignored the concerns and approved the deal. It was not unlike how the government ignored concerns over Bill C-18, which led to Facebook blocking media content on its platform.

This week, Canadians learned Netflix plans to withdraw funding for initiatives supporting Canadian creators, following the government’s dismissal of concerns over Bill C-11, The Online Streaming Act. To date, Netflix has invested more than $25 million, helping produce diverse programming from various creators, including those from Indigenous communities.

Even more concerning is Google recently announced it will implement a 2.5% "digital services tax" (DST) for consumers next week. That move simply passes on the DST the government imposed on Google. The tax will increase costs for Canadian businesses, potentially putting them at a disadvantage when competing with U.S. businesses that won't be subject to the tax.

Returning to the government's approval of Rogers acquisition of Shaw, it's crucial to note that at the time, Champagne claimed the deal, would drive wireless prices down for Canadians and promised to watch the telcos ‘”like a hawk” on Canadians' behalf.

I mention that because this week, a former Shaw customer sent me invoices detailing his recent experience with Rogers Communications after his two-year agreement with Shaw expired. After agreeing to a new two-year contract renewal rate with Rogers, the monthly charges started to increase significantly after only two months.

The reason for the increase? Hidden in the fine print of the contract renewal, Rogers Communications reserved the right to raise the monthly rental rate for equipment. Surprisingly, that applied even to devices more than three years old—as was the case here. The equipment was subject to a monthly rate hike.

That raises the question, why have a contract at all if Rogers can simply increase prices? After spending more than three hours with customer service, my constituent was finally told that Rogers would honour the contract originally agreed to.

From my perspective, a clear pattern is emerging. Facebook is blocking local news content, Netflix's potential withdrawal of funding from Canadian creative producers and consumers are being charged more for wireless services. It all all point to Liberal arrogance and a refusal to heed their critics. The trend is troubling and demands attention.

The NDP continues to condemn what it calls "corporate greed" but it stands with (Prime Minister Justin) Trudeau's government, which it accuses of enabling that same greed.

My question this week. Are you satisfied with your wireless services here in Canada? Why or why not?

I can be reached at [email protected] or call toll-free 1-800-665-8711.

Dan Albas is the Conservative MP for Central Okanagan-Similkameen-Nicola.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.