Watchdog to question Torstar staff as it narrows scope of Postmedia deal probe

The Globe and Mail's Susan Krashinsky Robertson writes:

"Five executives at Torstar Corp., including its chief financial officer, are to be interviewed under oath by investigators with Canada’s Competition Bureau, as the federal watchdog continues its probe of last year’s newspaper swap deal between the company and Postmedia Network Canada Corp.

"The Competition Bureau is also narrowing its investigation into the deal, in which 41 newspapers changed hands, and the majority were subsequently shut down. The federal watchdog is now solely pursuing a criminal investigation, under the conspiracy provisions of the Competition Act.

"The bureau’s review of the deal began on the day it was announced in November, 2017. At first, its investigation covered both the merger rules under competition law, which deal with whether a transaction leads to a 'substantial lessening or prevention of competition in any market in Canada,' as well as the conspiracy provisions, which can carry fines of up to $25-million, or up to 14 years imprisonment. The conspiracy rules include a number of prohibited activities, including 'market allocation' – competitors agreeing not to compete in certain geographic areas – as well as arrangements designed to restrict the supply of a product or to fix prices."

Full story