The Competition Bureau has entered into a consent agreement with Bell Media Inc. concerning its proposed acquisition of Outedge Media Canada LP, formerly Outfront Media Canada LP.
The agreement addresses competition concerns related to both companies' outdoor advertising services through their billboards and transit display inventories in Ontario and Quebec.
The Bureau’s investigation determined that the merger was likely to significantly reduce competition in Québec City, Trois-Rivières, Sherbrooke, the Greater Montréal Area, and the Greater Toronto Area. Before the merger, Outedge and Bell were vigorous competitors in these markets, where the number of rival suppliers of outdoor advertising services is limited. The loss of competition between the two companies would have likely led to higher prices and fewer customer options. Additionally, other companies would face substantial barriers to entering or expanding in these markets, including strict by-laws and lengthy permitting processes for outdoor advertising providers.
Under the agreement, Bell is required to sell 669 advertising displays, including certain digital displays, across the five affected markets. The Bureau designed this remedy to ensure that a purchaser would have a sufficient diversity of assets to effectively compete with Bell. The agreement considers the differences between Bell and Outedge’s outdoor advertising assets to maintain market competition.
The full consent agreement is available on the Competition Tribunal’s website.
Outdoor advertising, a type of out-of-home advertising, includes media such as billboards and transit displays. Bell is a communications company that offers various communication and media products and services to residential, business, and wholesale customers. Its subsidiary, Bell Media, provides conventional TV, specialty TV, pay TV, streaming, digital media, radio broadcasting, and out-of-home and advanced advertising services across Canada. Astral Out of Home, Bell Media’s out-of-home division, operates a network of out-of-home advertising assets in Canada.
Outedge Media, the former Canadian subsidiary of OUTFRONT Media Inc., is a real estate investment trust that provides advertising space on out-of-home advertising structures and sites in the United States and, prior to the acquisition, in Canada.
Consent agreements generally contain remedial measures deemed appropriate by the Competition Bureau to address the impact of conduct contravening the Competition Act. According to the Bureau, this consent agreement is a significant step in maintaining fair competition within the outdoor advertising market in Canada, ensuring consumers continue to benefit from competitive pricing and diverse advertising options.