The pinnacle of telecom and media agency Québecor is asking 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 Business Minister François-Philippe Champagne on Might 9, the Québecor CEO says Loblaw determined to “prematurely finish” Québecor’s contract for wi-fi gadgets 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 Cellular Store and there are 180 of them throughout the nation. Proper now, the kiosks promote cellphone plans from seven suppliers, together with Telus and Québecor’s Freedom Cellular.
On the model’s “about us” web page, The Cellular Store says “we do not work for anybody service, so we’ll by no means play favourites.”
In his letter, obtained by CBC Information, Péladeau says The Cellular Store will quickly promote solely Glentel merchandise. Glentel is a retailer owned by Bell and Rogers.
“(Loblaw) presents this resolution as a easy alternative of provide for its shops, however in our view, that is an method geared toward excluding sure different mobile phone operators to learn the corporate Glentel,” Péladeau says within the letter, translated from French.
“If Glentel obtains such favour from Loblaw, it’s as a result of it is a three way partnership made up of the giants Bell and Rogers who as soon as once more search to lock out competitors and take Canadians hostage of their shopper alternative.”
In his letter, Péladeau asks Champagne for “direct and agency” intervention in opposition to Loblaw, Rogers, Bell and Glentel.
Responding on Wednesday, Champagne mentioned this is a matter that must be dealt with by the Competitors Bureau.
“It is the Competitors Bureau that has the facility for the federal authorities,” mentioned Champagne.
The Competitors Bureau is an impartial legislation enforcement company. The minister does have the facility to direct a market examine in session with the fee, however that may be a distinct software than an investigation.
In a press release, The Cellular Store says its enterprise represents “lower than 5 per cent of gross sales in cell phones and plans in Canada.
“Primarily based on our restricted market presence in cell, our resolution of which service to promote does completely nothing to competitors,” says the assertion. “We’re continually reviewing our providing, and can proceed to offer a variety of decisions, together with robust, nationwide low-cost choices and full service plans.”
In his letter, Péladeau additionally questions the existence of Glentel, an organization co-owned by two of Canada’s largest telecommunication corporations, Bell and Rogers.
In 2015, Canada’s Competitors Bureau allowed the joint acquisition of the corporate to undergo, offered that the 2 telecom giants put up an “administrative firewall” to stop the sharing of competitively delicate data.
The bureau did categorical a fear that the acquisition would “considerably reduce competitors within the wi-fi sector.”
Within the letter, Péladeau says that whereas his firm has reached out to Loblaw head workplace relating to the take care of Glentel, “they persevered, favouring industrial pursuits over the buyer’s curiosity.
“It’s crucial that measures be taken to protect an atmosphere of truthful competitors within the telecommunications and grocery sectors in the perfect pursuits of the Canadian inhabitants.”
Elevated scrutiny for grocers, telecom corporations
Péladeau’s letter comes as grocers and telecom corporations face elevated stress over costs.
A motion to boycott Loblaw is underway after the grocery large reported $13.58 billion in income within the first quarter of 2024.
Loblaw agreed final week to signal the federal government’s grocery code of conduct — however provided that opponents do as effectively. The code is meant to handle long-standing points akin to arbitrary charges, value will increase imposed with out discover and late funds.
The federal authorities says it is attempting to coax worldwide grocers to arrange store in Canada in an effort to decrease costs.
The federal NDP compelled debate Tuesday on a movement calling for an extra revenue tax. The occasion has lengthy referred to as for such a tax.
Equally, the trade minister mentioned earlier this 12 months that Canadians are nonetheless paying an excessive amount of for telecom providers after Rogers mentioned it could hike the price of a few of its wi-fi plans for non-contract clients.
“Let’s be clear. Whereas some progress has been made to decrease costs, Canadians nonetheless pay an excessive amount of and see too little competitors,” mentioned Champagne in January.
