The head of telecom and media agency Québecor is calling on the federal authorities to intervene in a deal between Loblaw and an organization owned by Rogers and Bell that may see his firm and others pushed out of 180 Loblaw-owned shops.
In a letter Pierre Karl Péladeau despatched to Industry Minister François-Philippe Champagne on May 9, the Québecor CEO says Loblaw determined to “prematurely end” Québecor’s contract for wi-fi units and providers on the telecommunications kiosks inside Loblaw grocery shops — a transfer he calls anti-competitive and opposite to the pursuits of customers.
The Loblaw-owned grocery store kiosks are branded as The Mobile Shop and there are 180 of them throughout the nation. Right now, the kiosks promote cellular phone plans from seven suppliers, together with Telus and Québecor’s Freedom Mobile.
On the model’s “about us” web page, The Mobile Shop says “we don’t work for any one carrier, so we’ll never play favourites.”
In his letter, obtained by CBC News, Péladeau says The Mobile Shop will quickly promote solely Glentel merchandise. Glentel is a retailer owned by Bell and Rogers.
“(Loblaw) presents this decision as a simple choice of supply for its stores, but in our view, this is an approach aimed at excluding certain other cellular telephone operators to benefit the company Glentel,” Péladeau says in the letter, translated from French.
“If Glentel obtains such favour from Loblaw, it is because it’s a joint venture made up of the giants Bell and Rogers who once again seek to lock out competition and take Canadians hostage in their consumer choice.”
In his letter, Péladeau asks Champagne for “direct and firm” intervention in opposition to Loblaw, Rogers, Bell and Glentel.
Responding on Wednesday, Champagne mentioned this is a difficulty that needs to be dealt with by the Competition Bureau.
“It’s the Competition Bureau that has the power for the federal government,” mentioned Champagne.
The Competition Bureau is an unbiased legislation enforcement company. The minister does have the facility to direct a market research in session with the fee, however that may be a special instrument than an investigation.
In a press release, The Mobile Shop says its enterprise represents “less than five per cent of sales in mobile phones and plans in Canada.
“Based on our restricted market presence in cell, our determination of which provider to promote does completely nothing to competitors,” says the statement. “We are always reviewing our providing, and can proceed to present a spread of decisions, together with sturdy, nationwide low-cost choices and full service plans.”
In his letter, Péladeau also questions the existence of Glentel, a company co-owned by two of Canada’s largest telecommunication companies, Bell and Rogers.
In 2015, Canada’s Competition Bureau allowed the joint acquisition of the company to go through, provided that the two telecom giants put up an “administrative firewall” to prevent the sharing of competitively sensitive information.
The bureau did express a worry that the acquisition would “substantially lessen competition in the wireless sector.”
In the letter, Péladeau says that while his company has reached out to Loblaw head office regarding the deal with Glentel, “they endured, favouring business pursuits over the buyer’s curiosity.
“It is imperative that measures be taken to preserve an environment of fair competition in the telecommunications and grocery sectors in the best interests of the Canadian population.”
Increased scrutiny for grocers, telecom firms
Péladeau’s letter comes as grocers and telecom firms face elevated strain over costs.
A movement to boycott Loblaw is underway after the grocery big reported $13.58 billion in income in the primary quarter of 2024.
Loblaw agreed final week to signal the federal government’s grocery code of conduct — however provided that rivals do as nicely. The code is intended to address long-standing points comparable to arbitrary charges, price will increase imposed with out discover and late funds.
The federal authorities says it is trying to coax international grocers to set up shop in Canada in an effort to lower prices.
The federal NDP pressured debate Tuesday on a movement calling for an extra revenue tax. The occasion has long called for such a tax.
Similarly, the business minister mentioned earlier this 12 months that Canadians are still paying too much for telecom providers after Rogers mentioned it might hike the price of a few of its wi-fi plans for non-contract clients.
“Let’s be clear. While some progress has been made to lower prices, Canadians still pay too much and see too little competition,” mentioned Champagne in January.