CRA’s Antitrust & Competition Economics Practice assisted Postmedia Network Inc. (Postmedia) and Quebecor Media Inc. (QMI) throughout a review by the Competition Bureau of Postmedia’s acquisition of QMI’s English-language newspapers. On March 25, 2015, the Bureau announced it would not challenge the $305.5 million merger, noting it is unlikely to lessen competition for advertising or readership in areas of overlap.
Working with the parties’ advertiser-level data, CRA demonstrated that the historical declines in the use of display print advertising in local daily newspapers were widespread, across cities and advertisers. Rates of decline were not statistically different in those cities where the parties competed compared to cities without any overlap. CRA also assisted the parties in presenting efficiencies expected from the transaction.
“Charles River Associates is pleased to have offered our empirical research expertise to assess the likely competitive effects of the proposed merger throughout the review by the Competition Bureau,” said Margaret Sanderson, Vice President and Leader of the Antitrust & Competition Economics Practice at CRA.
CRA’s team was led by Margaret Sanderson and included Ioana Dan, Eric Mackay, and Andy Baziliauskas.