The merger of Rogers Communications and Shaw Communications, two of Canada's largest telecommunications companies, announced in December 2020, could potentially create a number of problems, including:
Reduced competition: The merger would bring together two of Canada's largest telecommunications companies, which would likely result in reduced competition in the market. This could lead to higher prices for consumers and a lack of incentive for the company to innovate and improve their services.
Lack of choice: The merger would result in the two companies various services and products being consolidated, which could result in a lack of choice for consumers. For example, if the merged company also controls the main cable and internet service provider in an area, customers may not have the option to switch to a different provider.
Job loss: The merger would result in the consolidation of various operations, and this could lead to job losses, particularly in the head office, back office, and administrative functions of the company.
Net neutrality concerns: the merger could lead to the companies controlling both the content and the pipe that delivers it, which could open opportunities for fast lane or discriminatory practices, breaking net neutrality principles.
Impact on the independent content providers: the merger could also impact the independent content providers and channels that rely on the distribution of Rogers and Shaw, it could be a challenge for them to negotiate a fair deal with the new behemoth in the market.
It's worth noting that the merger is still undergoing a regulatory review process and the Canadian Competition Bureau will study the deal closely to ensure it passes muster with Canadian competition law and regulations. If regulators believe the deal would hurt competition or lead to other negative impacts, they could prevent the merger from going through, or impose conditions on the merged company's operations to mitigate any negative effects.
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