Letters from CAMP: The Fix is In
Canadian Anti-Monopoly Project
CAMP is fighting for a more democratic economy
Welcome to Letters from CAMP, a newsletter on anti-monopoly activity in Canada and abroad, brought to you by the Canadian Anti-Monopoly Project. In this installment we have:
Let's dive in.
Hearn and Bednar’s “The Big Fix” Points the Way Forward for Competition in Canada
If there’s one topic on which CAMP is a broken record, it’s Canada’s monopoly problem. We see the consequences all around us. High prices, limited choice, low wages, reduced investment, the list goes on. Individual events like a disastrous bank merger removing a fierce mortgage competitor or telecoms hiking international roaming fees throw part of the picture into sharp relief, but we often miss the full scope of the monopoly drag on the Canadian economy.
Enter The Big Fix, a new book from author, researcher, and thinker Denise Hearn and CAMP Advisory Board member and policy provocateur Vass Bednar. Packing much into a small package, The Big Fix provides a broad sweep of the range of monopoly issues from kayfabe competitors, the monopolies behind the generative AI boom and the shaping role that capital has in digging competitive moats.
But the Big Fix is not simply a litany of woes stemming from Canada’s monopoly problem. Hearn and Bednar propose several steps that Canadians can take to turn the tide on corporate consolidation and its consequences. Without spoiling the ending, there’s much to be done at all levels of government and on behalf of individual citizens in creating a more democratic economy in Canada.
It goes without saying that we at CAMP are big fans of the book and hope you’ll consider picking up a copy from your local bookstore. The Big Fix is available for pre-order now and in stores October 15th from independent Canadian publisher Sutherland House Books.
📰CAMP in the News📰
Foreign Investment No Silver Bullet for Telecom Competition
This week, The Hub’s Sean Speer argued that attempts to engineer competition in Canada’s telecom sector through regulation have failed. The solution? Lift restrictions on foreign ownership, allowing foreign competitors to enter and shake up the market. This idea is popular with at least one other prominent Canadian, Telus CEO Darren Entwistle. Entwistle insists that opening the sector to foreign capital will lower prices and spur innovation.
But why is an oligopoly telecom CEO pushing for more competition? Because it isn’t about competition, it’s about cementing dominance. Foreign firms can already enter Canada’s telecom market and exceed the 10% market share cap on foreign investment, but only through organic subscriber growth. Current ownership rules block foreign stakes in large incumbents precisely to prevent further consolidating market power in the sector.
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If Canada’s telecom giants were allowed to tap into vast pools of foreign capital, or even be acquired by a foreign player, they could reduce their cost of capital while keeping our familiar oligopoly structure untouched. Telecoms in Canada claim they are able to pass on the cost of regulatory actions to Canadian consumers, so it’s unlikely that they’ll decide to become charitable with cost savings without change to the level of competition in the market.
Contrary to Speer’s claims, markets where regulatory actions have supported strong independent carriers like Sasktel or Shaw (RIP) deliver better outcomes for consumers. Rather than abandoning that work as Canadians reap the benefits, Canada needs instead to continue its work to create robust regulatory support for independent providers through spectrum set asides and wholesale access.
Lowering barriers for new entrants, not loosening ownership rules for the big incumbents, is what will ultimately create a fairer, more competitive telecom market. Foreign ownership reform sounds like a silver bullet, but without structural changes that prioritize diverse ownership and market access, it risks entrenching the very monopolies Canadians are hoping to escape.
📚What We’re Reading📚
The Secret Ingredient is Crime: TD Bank Hit With Historic Money Laundering Penalties
Whatever happened to Canada’s famously boring banks? This week, TD Bank was hit with a staggering $3 billion USD in fines and a cap on future growth from U.S. regulators after pleading guilty to conspiracy to commit money laundering. The fine, the largest penalty ever imposed on a bank for such offenses, comes after the bank admitted to facilitating money laundering for drug cartels and other criminal organizations, with employees ignoring or even joking about red flags. U.S. Attorney General Merrick Garland summed it up: “By making its services convenient for criminals, TD Bank became one.”
The scandal raises questions about the arguments made in defense of Canada’s concentrated banking sector. As the second largest of the Big Five, TD holds an immense amount of power in the Canadian economy. With nearly 90% of the country’s banking controlled by just a few players, these financial institutions wield massive influence. That influence may explain why Canada’s own money-laundering regulator, FinTRAC, fined TD a measly $9 million for ostensibly the same conduct as the U.S. DOJ pursued.
The penalties, which include an asset cap in the U.S. and restrictions on opening new branches, reveal the extent to which TD’s growth aspirations depended on high-risk, unchecked practices. The outcome is ironic given TD’s CEO spent years putting down the idea that independent FinTech competitors could be responsible stewards of the financial lives of Canadians.
TD’s complacence when it comes to money laundering should put the entire Canadian banking system on notice. Greater scrutiny of Canada’s banking giants is just one step towards ensuring that their market power is not abused at the expense of consumers and to the benefit of criminals.
If you have any monopoly tips or stories you'd like to share, drop us a line at hello@antimonopoly.ca