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Canada to ban Huawei from country's 5G, 4G networks, in line with Five Eyes allies – National Post

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2 years ago

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The decision is expected to be announced later today by Innovation Minister François-Philippe Champagne and Public Safety Minister Marco Mendicino

Publishing date:

May 19, 2022  •  6 hours ago  •  4 minute read  •  327 Comments

Huawei

OTTAWA — The Canadian government will ban equipment from Chinese companies Huawei and ZTE from both the country’s 5G and 4G wireless networks, following a review that took three years to complete.

“Telecommunication companies in Canada will not be permitted to include in their networks products or services that put our national security at risk,” Innovation Minister François-Philippe Champagne told reporters Thursday.

“Providers who already have this equipment installed will be required to cease its use and remove it.”

With the move, Canada falls in line with its allies in the Five Eyes intelligence network — the U.S., Australia, New Zealand and the U.K. — who have all already banned or restricted Huawei equipment from their 5G networks.

The Liberals have been promising a decision on a Huawei ban for three years. Asked about why it took so long, Champagne said “this has never been a race. This is about making the right decision.”

Over that time, Canada’s large telecoms have been moving on building stand-alone 5G networks using equipment from other vendors, meaning the Huawei and ZTE ban is largely irrelevant to those networks. So-called non-standalone 5G networks are integrated with older 4G networks.

Both Bell and Telus will have to remove existing Huawei equipment from those older networks. Telus warned the government back in 2019 that “a full ban on Huawei for 5G will force operators to replace their existing 4G Huawei equipment — an expensive and complex proposition over an elongated timeframe.”


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Innovation Canada said in a policy statement that telecom companies will have to remove 5G equipment and managed services from Huawei and ZTE by June 28, 2024, and “any existing 4G equipment and managed services must be removed or terminated by December 31, 2027.”

Champagne said Thursday the government would not be financially compensating telecoms. The National Post previously reported both Bell and Telus approached the government about the possibility of being compensated by taxpayers for the cost of removing equipment.

On top of older, previously-sold equipment, Huawei has sold slightly more than $700 million worth of equipment to telecom operators in Canada since 2018, mostly to Bell and Telus.

Margaret McCuaig-Johnston, a China expert and senior fellow with the Graduate School of Public and International Affairs at the University of Ottawa, said that two and five years to remove all the Huawei equipment is just too long.

Though she said she is “fully in favour” of the Liberals’ announcement Thursday, she said she’d hoped the government would go as far as the U.S. and outright ban all of the company’s products, such as consumer items like cellphones.

“There are other elements of what the company provides that can also be a problem,” she said.

The Huawei and ZTE ban stems from the fear that having Huawei equipment in Canada’s next-generation wireless networks is a security risk, especially considering China’s laws that state companies must cooperate with its intelligence services.

This delay only worked to raise serious questions at home and among our allies about the Liberal government’s national security commitments

Innovation Canada said in its policy statement that the Canadian government is seriously concerned the two companies “could be compelled to comply with extrajudicial directions from foreign governments in ways that would conflict with Canadian laws or would be detrimental to Canadian interests.”

Asked what threat Huawei poses to Canada, Public Safety Minister Marco Mendicino said the “examination that was conducted over the last period of time, it was thorough, it was meticulous, it was on the strength of the advice that we get from our national security partners.”

The government will also soon introduce legislative framework for protecting critical infrastructure in the finance, energy, telecom and transport sectors, Mendicino said. Critical infrastructure has become more vulnerable to cyber-attacks over the past decade as it’s been increasingly connected to the internet.

In separate statements, the opposition Conservatives, NDP and Bloc Québécois all essentially said: it’s about time.

“The Liberal government’s lack of action on this decision has been an international embarrassment,” Conservative MP Raquel Dancho said. “In the years of delay, Canadian telecommunications companies purchased hundreds of millions of dollars of Huawei equipment which will now need to be removed from their networks at enormous expense.”

The NDP’s Brian Masse said the decision was “long overdue” and ultimately may have hurt Canada’s reputation in its intelligence allies’ eyes.

“It has taken the Liberal government three years to make this decision while the other Five Eyes countries made their positions known much sooner. This delay only worked to raise serious questions at home and among our allies about the Liberal government’s national security commitments and hampered the domestic telecommunications market.

The Bloc Québécois said it welcomed the “tardy” decision, and insisted that no government money would be spent compensating telecom giants who already have Huawei technology in their systems.

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Canada Goose to get into eyewear through deal with Marchon

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10 hours ago

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September 19, 2024

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TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.

The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.

The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.

Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.

Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.

Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:GOOS)

The Canadian Press. All rights reserved.

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A timeline of events in the bread price-fixing scandal

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11 hours ago

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September 19, 2024

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Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.

Here’s a timeline of key events in the bread price-fixing case.

Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.

Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.

Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.

Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).

Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.

June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.

Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”

Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.

July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.

Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)

The Canadian Press. All rights reserved.

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TD CEO to retire next year, takes responsibility for money laundering failures

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14 hours ago

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September 19, 2024

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TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.

Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.

The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.

As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.

TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.

TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:TD)

The Canadian Press. All rights reserved.

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