Rogers Communication Inc. is being sued by the wireless startup Mobilicity. According to the complaint that has been filed, Mobilicity claims that Rogers is in voilation of competition laws with their discount service Chatr.

In July of this year, Rogers started a new wireless service in 5 Canadian cities, Calgary, Edmonton, Ottawa and Vancouver. Coincidentally, these are all cities that Mobilicity has obtained regulatory licenses so that they can operate lawfully.

According to Section 78 of the Competition Act, starting a “fighting brand” for the sole purpose of driving a small operator out of business is prohibited and it is on these grounds that Mobilicity has filed their lawsuit. Generally speaking, “fighting brands” are created for the sole purpose of eliminating the competition and once they are gone, that brand has served its purpose and is eliminated, with price increases to follow.

Via: Vancouver Sun