The CEO of Quebecor, Pierre Karl Péladeau, has raised concerns and called for federal intervention in a deal between grocery giant Loblaws and Glentel, a company owned by Rogers and Bell. The deal would result in Freedom Mobile and other wireless providers being displaced from kiosks within Loblaws-owned stores.
The controversy arose when Loblaws decided to terminate Quebecor's contract for wireless devices and services at The Mobile Shop, which is branded inside their supermarkets. Péladeau argues that this move is anti-competitive and would lead to The Mobile Shop exclusively selling Glentel products, ultimately shutting out competition in the market.
In response to Péladeau's letter, Industry Minister François-Philippe Champagne stated that the issue should be addressed by the Competition Bureau. The government recently amended the Competition Act to grant the bureau more legal authority, signaling a commitment to ensuring fair competition in the marketplace.
NDP Leader Jagmeet Singh has also called for an investigation by the Competition Bureau into the deal between Loblaws and Glentel. The Mobile Shop defended its position by stating that its market presence in mobile is limited, representing less than five percent of sales in Canada, and that their decision on which carrier to sell does not significantly impact competition.
Loblaws, already facing a boycott over high grocery prices, reported significant revenue in the first quarter of 2024. It remains to be seen how this situation will unfold and whether federal intervention will be necessary to address concerns of anti-competitiveness in the wireless market in Canada.
