MONTRÉAL, June 12,
2024 /CNW/ - Quebecor has filed a complaint with the
Competition Bureau regarding an agreement between Loblaw and
wireless carriers Bell and Rogers, through their joint venture
Glentel, that would give them exclusive selling rights at The
Mobile Shop. This agreement would shut Freedom Mobile out of
180 Loblaw-owned grocery stores and further strengthen the
stranglehold of the telecom oligopoly which, based on available
data, would henceforth control 62.5% of all third-party retailers
in the Canadian wireless industry.
Quebecor is confident that the Competition Bureau will
investigate the grocery giant's practices and the business model of
joint ventures such as Glentel, which create further
concentration to the detriment of Canadian consumers.
"The agreement between Loblaw and Glentel cloaks yet another
attempt by the dominant players in the telecommunications market to
thwart competition," said Pierre Karl Péladeau, President and CEO
of Quebecor. "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."
An essential sales channel for healthy competition
Retail sales account for a significant portion of the Canadian
wireless industry's revenues. Quebecor estimates that in 2023, over
80% of Canadian wireless product sales were made in person
in-store.
Bell, Rogers and Telus have clear market dominance, exercised
largely through third-party retailers operating under generic names
such as tbooth wireless, Wirelesswave and Wow! Mobile Boutique,
giving customers a false sense of objectivity. Currently, 49.5% of
these retailers are controlled by at least one member of the Big 3.
If Glentel lays its hands on 180 The Mobile Shop outlets, the
percentage will rise to 62.5%, further strengthening the
oligopoly's grip on retail sales of wireless products and
services.
"The expansion of controlled retail will deprive the other
players of a fair and equitable opportunity to make a dent in the
controlling market share of the Big 3," Mr. Péladeau said. "These
concerns were brought to the attention of Loblaw senior management
but were brushed aside. They are pursuing their own financial
interests at the expense of Canadian consumers."
Quebecor is therefore calling for action to preserve a fair
competitive environment in the telecommunications and grocery
businesses, in the best interests of Canadians.
About Quebecor
Quebecor, a Canadian leader in telecommunications,
entertainment, news media and culture, is one of the
best-performing integrated communications companies in the
industry. Driven by their determination to deliver the best
possible customer experience, all of Quebecor's subsidiaries and
brands are differentiated by their high-quality, multiplatform,
convergent products and services.
Québec-based Quebecor (TSX: QBR.A, QBR.B) employs more than
11,000 people in Canada.
A family business founded in 1950, Quebecor is strongly
committed to the community. Every year, it actively supports more
than 400 organizations in the vital fields of culture, health,
education, the environment and entrepreneurship.
SOURCE Québecor Média inc.