Competition Bureau clears MLSE deal, hears ‘serious concerns’

The Competition Bureau said Wednesday it has approved BCE Inc. and Rogers Communications Inc.'s deal to acquire Maple Leaf Sports & Entertainment Ltd. (MLSE) but said it “heard a number of serious concerns” about market concentration in the broadcasting sector. “he Bureau has heard a number of serious concerns from market participants about the effect that incremental increasing concentration and vertical integration in the broadcasting industry is said to be having on consumers, as well as on non-vertically integrated broadcasting distribution and programming undertakings. The Commissioner is actively reviewing these concerns and will not hesitate to take action should she determine that there has been a violation of the Act,” a release said. Bell and Rogers announced a $1.32-billion deal in December to acquire a 75 per cent controlling stake in MLSE, giving them joint ownership of and regional broadcast rights to the Toronto Maple Leafs, Toronto Raptors and MLS soccer team Toronto FC. The bureau, in its review, said it analyzed information provided from the companies, third parties, and “interviewed multiple industry participants, including programming undertakings, broadcast distribution undertakings (BDU), and sports leagues.” It said it issued a “No Action Letter” to Bell and Rogers Wednesday clearing the transaction. The bureau noted that Rogers and Bell are both vertically integrated companies with wireless, Internet, broadcast distribution and media divisions. The release added that, under section 97 of the Competition Act, there is a one-year period following a transaction during which it can be challenged to the Competition Tribunal. The deal must be cleared by sports leagues and the CRTC, which is reviewing the purchase of MLSE's broadcasting properties, including specialty channels Leafs TV, GolTV, and NBA TV Canada. Bell and Rogers said in releases Thursday that the transaction is expected to close in mid-2012.

Competition Bureau clears MLSE deal, hears ‘serious concerns’

Brief | May 3, 2012

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us