On Feb. 21, TekSavvy Solutions Inc. filed a complaint with the Competition Bureau, alleging that internet service providers Bell Canada and Rogers Communications Canada Inc. have engaged in anti-competitive practices such as rate manipulation.
In the complaint, which sought an inquiry and enforcement action by the federal competition commissioner, TekSavvy, a competitor of Bell and Rogers, says the telecommunications companies took advantage of their dominant positions in the wholesale market to drive up costs. In the retail markets, Bell and Rogers targeted competitors using their internet brands, respectively named “Virgin” and “Fido,” to offer retail prices below the wholesale prices in order to exclude retail competitors, the complaint said.
TekSavvy argued that Bell and Rogers had met all three requisites under s. 79(1) of the Competition Act, RSC 1985, c C-34: the two companies jointly dominated the wholesale and retail markets in their incumbent serving territories, they committed anti-competitive acts to the effect of excluding competitors such as TekSavvy, and they substantially lessened and prevented competition in the markets due to their anti-competitive acts.