Canadian integrated communications company Quebecor has officially filed a complaint with the country’s Competition Bureau against an exclusive agreement between Loblaw and Glentel, a joint venture of Bell and Rogers.
The deal would grant exclusive selling rights at The Mobile Shop to these wireless carriers, potentially excluding Freedom Mobile from 180 Loblaw-owned grocery stores. The Mobile Shop is the Loblaw house brand for telecom.
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Quebecor states that the agreement could result in a significant market shift, with 62.5% of all third-party Canadian wireless retailers falling under the control of the telecom oligopoly.
Bell, Rogers and Telus, known collectively as the Big 3, already have a substantial presence through third-party retailers such as tbooth wireless, Wirelesswave and Wow! Mobile Boutique.
The Big 3 control 49.5% of these retailers. The complaint asserts that the outlets, operating under generic names, often give the impression of neutrality while being tied to the dominant telecom players.
The addition of The Mobile Shop outlets would increase their influence, further establishing the oligopoly’s hold on the retail sales of wireless products and services.
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By GlobalDataQuebecor is advocating for measures to maintain fair competition within the telecommunications and grocery sectors for the benefit of Canadian consumers.
The company emphasises the importance of retail sales in the Canadian wireless industry, estimating that in 2023, more than 80% of wireless product sales occurred in-store.
Quebecor president and CEO Pierre Karl Péladeau stated: “The agreement between Loblaw and Glentel cloaks yet another attempt by the dominant players in the telecommunications market to thwart competition.
“To our knowledge, 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. 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.”
Quebecor, which engages in entertainment, telecommunications, news media and culture, remains hopeful that the bureau will investigate the grocery giant’s practices and the business model of Glentel.
