January 19, 2024

Welcome to Letters from CAMP, a newsletter on anti-monopoly activity in Canada and abroad, brought to you by the Canadian Anti-Monopoly Project. In this installment we have:

• Competition Bureau breaks Sobeys grocery grip on the residents of Crowsnest Pass
• Government approves Bunge-Viterra agribusiness deal at the expense of farmers
• Rogers tops the charts as Canada’s most complained-about telecom

Now let’s dive in.

Canadian Community Freed from Grocery Gatekeepers

Crowsnest Pass, a community of just under six thousand Canadians on the border between British Columbia and Alberta, is home to one grocery store. Until today, you could be forgiven for thinking that the reason for this situation is that a community of that size can only support one grocery store. But we now know that isn’t the case.

In a narrow but important win for competition, the Competition Bureau has successfully forced Sobeys to relinquish a property control that had prevented a second grocery store from opening in the municipality, spelling the end of a seven-year stranglehold by the grocer. For Crowsnest Pass residents, this brings not only the potential for lower prices and greater variety in the grocery aisle, but also the freedom to start and grow businesses that serve their community.

Property controls like these are just one of the many anti-competitive tactics used by dominant players to restrict economic freedom and keep competition at bay. Harmful anywhere in the country, these restrictions are particularly insidious in remote communities where a property control could put the next closest competition an hours-long drive away.

While an important step towards a fairer deal for the people of Crowsnest Pass, grocers engage in these practices across the country. As the Bureau’s investigation into Sobeys and Loblaw’s use of property controls continues, Canadians cannot be asked to settle for piecemeal wins in only the most extreme monopoly situations. What worked in Crowsnest Pass will work across the nation, and a nationwide response is necessary to turn the tide in favour of consumers. This is a good start, but it’s time to unleash real competition in the grocery industry.

📚 What We’re Reading 📚

• ​Wider Benefits of Competition Policy and Enforcement (Competition and Markets Authority)
• Lately, The End of the Fixed Price (Globe and Mail)
• Dee-Ann Durbin, US lawsuit accuses PepsiCo of price discrimination that favored Walmart over smaller stores (AP News)

Government Gives Bunge-Viterra the Green Light and Farmers Foot the Bill

The federal government’s approval of Bunge’s $8 billion takeover of Viterra this week has sparked outrage among prairie producers and competition advocates alike. While Ottawa touts its “extensive terms and conditions” to protect competition, the deal hands even more control over Canada’s critical grain supply chain to a single multinational agribusiness giant​​.

One particularly alarming aspect of the deal is the potential fallout at the Port of Vancouver, where the Bunge-Viterra deal means more intense consolidation that could choke off competition for grain export capacity. As Canada’s largest gateway for grain, the port’s efficiency and accessibility are essential for farmers to get their crops to global markets. With fewer companies dominating the port’s logistics and crush facilities, farmers face reduced transparency, diminished bargaining power, and higher costs to move their products​​.

Researchers estimate that the deal could cost producers billions in lost revenue, with ripple effects across the entire agricultural economy. If Canada wants to protect its farmers and ensure fair market access, we need to change how we think about consolidation. This is the case not just for agriculture, but for every sector where monopolies are deepening their roots.

📰 CAMP in the News 📰

• Editorial Board, Another merger, another drop in competition (Globe and Mail)

Rogers: Canada’s Complaints Champion

If frustrating customers were a sport, Rogers would lead the league. According to the latest report from the Commission for Complaints for Telecom-Television Services (CCTS), Rogers received 24% of all complaints during the 2023–24 reporting period—a staggering 68% increase from the previous year. The top issues included incorrect charges, unresolved credits, and, worst of all, a 447% spike in complaints about regular price hikes​.

This avalanche of complaints comes as no surprise to anyone following the aftermath of the Rogers-Shaw merger, which CAMP staunchly opposed. At the time, we warned that less competition would lead to higher prices and worse service for all consumers. The CCTS report shows that these fears were well-founded. Billing complaints—the most common gripe—rose by 52% across all telecom providers, with Rogers leading the pack. This isn’t just an issue of bad service; it’s a reflection of what happens when competition doesn’t keep companies in check.

Rogers has pointed to “increased public awareness” of the CCTS as one reason for the spike in complaints, but the numbers paint a different picture. The merger gave Rogers even more market power, enabling the company to lower the quality of support with minimal fear of losing customers to competitors. With fewer choices and rising costs, Canadian consumers are left with the bill—literally.

If you have any monopoly tips or stories you’d like to share, drop us a line at hello@antimonopoly.ca

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