March 27, 2015
On March 25, the Competition Bureau issued its approval for Postmedia Network Inc.’s proposed takeover of Quebecor Media Inc.’s Sun newspapers. In its public statement outlining the factors that were considered, the Bureau revealed that it considered the growing competition to traditional media posed by digital alternatives. While on the whole, the Bureau’s analysis of the proposed deal closely aligns with its established methodology, competition lawyers are taking note of the digital media factor in its approval—with some seeing it as a sign that online media will play a greater role in future media deals involving the Bureau. Partner and co-head of the firm’s Competition and Foreign Investment Review Practice Omar Wakil shared his perspective on the Bureau’s approach for the Legal Post. Below is an excerpt of the article:
To be sure, the bureau noted in Wednesday's decision that there is currently not a lot of overlap between advertising in newspapers and other venues for ads, including TV, radio and online.
“The decision reinforces the conventional analysis to media mergers, which is that they look at the impact of a media transaction on the advertising market in particular media,” said Omar Wakil, a partner with Torys LLP. “The bureau is saying an advertisement on TV is not the same thing as an advertisement in the newspaper.”
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