A corporate clash has erupted between two Canadian telecom giants, as Quebecor Inc.’s subsidiary Videotron has launched a $91-million lawsuit against Rogers Communications Inc., alleging a breach of contract tied to the sale of Freedom Mobile two years ago.
In legal documents filed with the Ontario Superior Court of Justice last week, Videotron is demanding that Rogers be compelled to “specifically perform their obligations” under the terms of a 2022 agreement. That agreement was a key part of the approval process for Rogers’ massive $26-billion acquisition of Shaw Communications Inc.
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🧾 Background: The $2.85-Billion Deal That Made Waves
Back in 2022, as part of the regulatory path to seal the Rogers-Shaw mega-merger, Freedom Mobile — then owned by Shaw — was sold off to Videotron for $2.85 billion. The move was designed to satisfy antitrust regulators who were concerned that the merger would reduce competition in Canada’s already tightly held wireless market.
Following intense scrutiny and multiple layers of regulatory review, both the merger and the Freedom sale received final approval in March 2023.
⚖️ What’s in the Lawsuit?
The notice of action, filed on April 3, 2025 — the second anniversary of the deal’s closing — alleges that Rogers failed to uphold its end of the bargain. However, the court filing does not disclose specific details about what obligations Videotron believes were breached.
For now, the lawsuit remains at the initial stage. A notice of action is essentially the opening move in a civil court case. It signals the intent to sue and must be followed by a full statement of claim within 30 days.
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🤔 What Could This Mean for Consumers and the Industry?
While the legal specifics are still under wraps, the case could reignite concerns over the broader implications of telecom consolidation in Canada. The Rogers-Shaw merger — already one of the most scrutinized deals in Canadian business history — was greenlit partly on the premise that the sale of Freedom would ensure fairer market conditions.
If Rogers is found to have undermined that agreement, it could raise red flags among regulators and consumer advocacy groups.