Loblaw’s recent cellphone move deemed ‘anti-competitive’

Loblaw’s recent move to only sell Glentel cellphone products and services in its stores is being called “anti-competitive” by telecom and media firm Quebecor, reports CBC.

Quebecor founder Pierre Karl Peladeau sent a letter to Industry Minister Francois-Philippe Champagne calling for government intervention after Loblaw ended Quebecor’s wireless devices and services contract.

Loblaw plans to sell only Glentel products, owned by Bell and Rogers, at The Mobile Shop, which are kiosks located at all 180 Loblaws locations. Currently, cellphone plans from seven providers are offered at the kiosks. Bell and Rogers are Canada’s two largest telecommunications companies.

Peladeau is calling on Champagne for action, but the Industry Minister said it needs to be addressed by the Competition Bureau, an independent law enforcement agency. Recent changes to the Competition Act by the government gave the bureau more legal powers.

In April, Loblaw launched its No Name Mobile network which will be offered at the company’s No Frills stores.

The discount cellphone plans include prepaid mobile sim cards for purchase.