Loblaws playing favorites with telecom companies, reducing choices and increasing prices for Canadians: NDP

OTTAWA — On Wednesday, NDP Leader Jagmeet Singh and NDP Critic for Innovation, Science and Industry, Brian Masse wrote a letter to the Competition Commissioner calling for an investigation into an alleged agreement between Loblaws and telecom companies that will reduce competition and keep prices high for Canadian consumers.

Allegations have surfaced that The Mobile Shop, a division of Loblaws, is favouring Glentel, a wireless retailer jointly owned by Bell Canada and Rogers over other telecom providers in their over 180 stores country-wide.

“Canadians are fed up with the high prices and the lack of competition in the grocery and telecom industries,” said Singh. “Canadian consumers pay some of the highest cell phone and internet bills in the world while the big telecom companies maximize profits for their shareholders and give outrageous bonuses to their CEOs. This isn’t happening by accident.

“The Liberals are letting massive corporations rip off Canadians and failing to ensure there is enough competition in the telecom and grocery sectors to give people real options. And the Conservatives party is packed with lobbyists who ensure ultra-rich CEOs make massive profits instead of defending hardworking people trying to pay their bills.”

These troubling allegations emerged following a media report that Quebecor, a telecom company, has written to the Industry Minister asking him to intervene.

“This is very concerning,” said Masse. “We’re asking that the Competition Bureau conduct a comprehensive investigation into these allegations, and into the potential abuse of market dominance by Loblaws, Bell, and Rogers to restrict competition and choice for Canadian consumers.

“The government has the power to regulate these back room deals and stop them from going ahead when they hurt Canadians. They have a responsibility to protect people from price gouging but the Liberals and Conservatives choose to protect the ultra-wealthy CEOs and their corporate friends. New Democrats know that it has to stop.”