A local MP is cautioning a takeover deal between Rogers and Shaw will lead to higher prices for consumers.
It was announced Monday Rogers Communications would buy Shaw Communications in a deal valued at $26-billion.
Windsor West New Democrat MP Brian Masse says the takeover will eliminate another competitor in the Canadian telecom market, which is already one of the least competitive in the world.
He says he's calling for an investigation into the deal.
"We don't need less competition in the market. Rogers previously tried to buy Cogeco through a hostile takeover. The bottom line is that consumers will be left with fewer choices, higher prices and it needs a thorough investigation which we're asking for," says Masse,
He says the telecommunications sector is like the wild west.
"The government has not actually been pushing back against the practices. Record profits and record earnings and at the same time we still don't have the proper competition. So this is just a natural reaction in the market to lack of government direction," says Masse.
He says more regulation is needed.
"That's why we've called in the past for price capping and some controls over the type of system that we have because we have an issue with competition to begin with and the market reaction to the Liberal program right now is to buy each other up and this cannibalization is not a solution for consumers," adds Masse.
The deal, which is expected to close in the first half of 2022, still needs approvals from Canadian regulators.
With files from Rob Hindi