Quebec Print Media Evolution Continues

Apple computers, iPhones, iPads build a brand loyalty most companies would kill for.
Apple computers, iPhones, iPads build a brand loyalty most companies would kill for.
Increasingly digital media is taking the field from print media.
Increasingly digital media is taking the field from print media.

Print Media Evolution in Quebec

THUNDER BAY – BUSINESS – The print media continues to evolve into the digital age. With more people than ever using the Internet for online shopping, and getting their news and information, the market is shifting all the time.

Today Canada’s Competition Bureau has announced it has approved the sale of 14 Transcontinental community newspapers. Of these, three will continue to be operated as traditional weekly newspapers and 11 will be operated in online format. Those eleven papers will no longer publish a printed edition. Print media involves a greater cost for many smaller market publications. Companies are starting to shift from print media to online media.

Le Journal de Saint-Hubert (Saint-Hubert) and Rive-Sud Express (Longueuil) are being acquired by Les MÉDIAS de la Rive-Sud.

L’Écho du Nord (Saint-Jérôme) is being purchased by a company administered by Serge Langlois, Michel Langlois, Claude Langlois, Carole Côté and Pierre-Marc Langlois, four experienced publishers who produce other community newspapers in the area via Les Éditions Blainville Deux-Montagnes.

Néomédia, a division of iClic inc, is acquiring 11 newspapers. Néomédia, based in Saint-Georges de Beauce, has its own distribution platform and special expertise in local and regional news websites. The firm is buying the following community newspapers and intends to operate them in online format:

  • Agri-Vallée, Valleyfield
  • Chambly Express, Chambly
  • Le Journal de Joliette, Joliette
  • Le Point du Lac-Saint-Jean, Saint-Félicien
  • Le Réveil, Saguenay
  • L’Écho de la Rive-Nord, Sainte-Thérèse
  • L’Écho de Laval, Laval
  • L’Écho de Trois-Rivières, Trois-Rivières
  • Pub Extra Magazine, Laval-Laurentides
  • Sorel-Tracy Express, Sorel-Tracy
  • Vallée du Richelieu Express, Mont-Saint-Hilaire

These sales are being made under the May 2014 Consent Agreement between Transcontinental and the Bureau relating to Transcontinental’s proposed acquisition of 74 community newspapers from Québecor Media inc. The aim of the Consent Agreement was to preserve competition in the sale of advertising in community newspapers in several areas in Quebec by requiring that 33 community newspapers be put up for sale.

The objective of the sale process was to test for the availability of possible alternatives to Transcontinental owning all the papers. However, even with incentives such as no minimum price and Transcontinental providing distribution and printing services to any potential purchaser for a specific period of time, no buyer was found for some of the papers.

Transcontinental now retains full ownership of the 19 community newspapers that were not sold.

Quick Facts
iClic operates, a local news source for the Beauce region, and has helped approximately 15 regional newspapers make the transition to an online format.

In approving iClic as the purchaser, the Commissioner carefully considered a number of factors, including the criteria set out in the Consent Agreement and the Bureau’s guidance set out in Part 13 of the Merger Enforcement Guidelines. Ultimately, the Commissioner was satisfied that iClic would lessen Transcontinental’s market power in these markets and, as such, was a competitively preferable purchaser, particularly in light of the fact that the likely alternative to iClic’s purchase was the complete closure of these 11 newspapers.

Mergers in Canada are subject to review by the Bureau under the Competition Act to ensure that they will not result in a substantial lessening and/or prevention of competition.

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