The Commissioner of Competition, Matthew Boswell said in a recent speech that “it’s not bad to be big” while outlining the noteworthy legislative changes to the monopolistic practices provisions of the Competition Act. He added that “companies that grow large by innovating and competing on the merits should not be punished”. While high levels of market concentration can indicate potential monopolistic practices, modern competition policy recognizes that high market share alone should not be a concern. Instead, the competitive dynamics of the market, consumer welfare, and the behaviour of the firms within the market must be considered to accurately assess the implications of market concentration. That being said, the recent amendments to the merger provisions which repealed the efficiency defence, introduced U.S. style rebuttable market concentration presumptions and now permit mergers to be blocked on the basis of market shares alone suggest that proposed mergers in concentrated sectors could be in for a bumpy ride from the Competition Bureau.Continue Reading Does firm size matter more with the recent amendments to the Competition Act?
Amendments
Competition Bureau Announces Public Consultation and Guidance on Greenwashing
On July 22, 2024, the Competition Bureau (the “Bureau”) announced that it is launching a public consultation to gather stakeholder feedback relating to the interpretation and application of the new greenwashing provisions of the Competition Act (the “Act”). Contemporaneously with this announcement, the Bureau also published a new issue (Volume 7) of its Deceptive Marketing Practices Digest, focusing on the application of provisions of the Act which existed prior to the amendments to environmental claims. As discussed below, the Digest does provide limited new guidance regarding environmental “claims about the future” (such as net zero claims).Continue Reading Competition Bureau Announces Public Consultation and Guidance on Greenwashing
Proposed amendments to the merger review process in Canada: Implications for businesses
Merger review under the Competition Act (the “Act”) is undergoing significant change. As discussed in our previous blog post, the Federal Government has proposed significant amendments to the Act. These amendments, which are included in Bill C-56 and Bill C-59 (together, the “Bills”) and touch on virtually all facets of competition policy in Canada, represent “generational changes” that, according to the Government’s 2023 Fall Economic Statement, are intended to “help bring Canada into alignment with international best practices to ensure that our marketplaces promote fairness, affordability, and innovation”.Continue Reading Proposed amendments to the merger review process in Canada: Implications for businesses
Significant Competition Act Amendments on the Horizon
Federal Government Releases Proposed Bill relating to Fall Economic Statement – including Significant Competition Act Amendments
– and –
Revised text of Bill C-56 Released
On November 27, 2023, the Federal Government passed a Notice of Ways and Means Motion to introduce a bill entitled An Act to implement certain provisions of the fall economic statement tabled in Parliament on November 21, 2023 and certain provisions of the budget tabled in Parliament on March 28, 2023, which was tabled on November 30, 2023 as Bill C-59 (the “Bill”). The Bill proposes amendments that implement some of the goals discussed in the 2023 Fall Economic Statement to strengthen competition in Canada (as discussed in our previous blog post).Continue Reading Significant Competition Act Amendments on the Horizon
Federal Government Releases Fall Economic Statement – with New Competition Act Amendments Previewed
On November 21, 2023, the Federal Government released its 2023 Fall Economic Statement (the “Statement”). The Statement lays out the Federal Government’s multifaceted plan to improve housing in Canada, support the middle class, bolster the economy and create a stable financial sector. Additionally, the Statement outlines the Federal Government’s desire to strengthen competition in Canada through proposed amendments to the Competition Act (the “Act”). More specifically, the Statement discusses changes aimed at combatting alleged dominance abuses by large companies, modernizing merger reviews, protecting consumers from misleading claims and enabling private entities to engage in legal proceedings related to anti-competitive practices. These changes, according to the Statement, “will help bring Canada into alignment with international best practices to ensure that our marketplaces promote fairness, affordability, and innovation.”Continue Reading Federal Government Releases Fall Economic Statement – with New Competition Act Amendments Previewed
Bureau Publishes New Abuse of Dominance Guidelines
On June 23, 2022, Bill C-19, also known as the Budget Implementation Act, 2022, No.1 (the “BIA”), received royal assent. As discussed in our previous blog post, the BIA includes significant amendments to the Competition Act (the “Act”), including with respect to abuse of dominance, which came into force in June 2022. On October 25, 2023, the Competition Bureau (the “Bureau”) released a draft bulletin discussing its approach to the June 2022 abuse of dominance amendments (the “Draft Bulletin”). This blog post summarizes this new guidance.
By way of background, abuse of dominance under section 79 of the Act occurs when (i) a dominant firm or a dominant group of firms (ii) engages in a practice of anti-competitive acts, (iii) with the result that competition has been, is, or is likely to be prevented or lessened substantially in a market. Section 78 of the Act sets out a non-exhaustive list of examples of anti-competitive acts. Applications under the abuse of dominance provisions are heard only by the Competition Tribunal (the “Tribunal”). Where all three requirements of section 79 are met, the Tribunal may prohibit the anti-competitive conduct and may also direct the dominant firm to pay an administrative monetary penalty (“AMP”) or to take any action that is reasonable and necessary to overcome the anti-competitive effects of the conduct.Continue Reading Bureau Publishes New Abuse of Dominance Guidelines
Takeaways from the Competition Bureau’s Competition Law Summit and Report on Competition
On October 5, 2023, the Competition Bureau (the “Bureau”) hosted a summit (the “Summit”) on competition law and policy in Canada. Among other things, the Summit included discussions focusing on Canada’s current economic landscape; the main barriers to competition in Canada; Canadians’ diverse perspectives on competition issues in Canada; and building a whole-of-government competition agenda.
This blog posts discusses a number of key themes and takeaways that emerged from the Summit, and which may inform the government’s approach in the ongoing competition law reform process. Among other things, these themes included: (i) the need to implement an all of government approach regarding competition policy in Canada, (ii) lack of competitive intensity in Canada driven, in part, by regulatory barriers and burdens, and (iii) the need to modernize Canada’s competition laws.Continue Reading Takeaways from the Competition Bureau’s Competition Law Summit and Report on Competition
Public Consultation on Amendments to the Competition Act – Summary of Feedback
On September 20, 2023, the Department of Innovation, Science and Economic Development (“ISED”) released a report summarizing the submissions received from the public relating to the ongoing competition law amendment consultation process (the “Consultation Report”).
By way of background, as discussed in our previous blog post, the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, launched the much anticipated public consultation for potential amendments to the Competition Act (the “Act”) on November 17, 2022. The call for public engagement highlighted that the review would focus on the role and functioning of the Act, the role and powers of the Competition Bureau (the “Bureau”), the effectiveness of remedies and private redress mechanisms, addressing challenges of data and digital markets, and other pro-competitive policies.Continue Reading Public Consultation on Amendments to the Competition Act – Summary of Feedback
Proposed Amendments to the Competition Act receive first reading in House of Commons
On September 18, 2023, Bill C-352, which was introduced by Jagmeet Singh (leader of the NDP), had its first reading in the House of Commons (the “Singh Bill”). On September 21, 2023, Bill C-56, which was introduced by Chrystia Freeland (Deputy Prime Minister and Minister of Finance), also received its first reading in the House of Commons (the “Government Bill”). Each of these bills includes significant proposed amendments to the Competition Act in response to the ongoing public consultation and legislation review process regarding competition policy in Canada.
While each of the bills share some similarities (including, for example, the introduction of market study powers and removal of the efficiencies defence), the bills include a number of different proposals and the Singh Bill includes overall more substantive recommendations for amendments to Canada’s existing competition law regime.Continue Reading Proposed Amendments to the Competition Act receive first reading in House of Commons
United States Antitrust Agencies Announce New Merger Guidelines: Overview and Implications for Canada
On July 19, 2023, the United States Federal Trade Commission and the United States Department of Justice (together, the “Agencies”) released draft Merger Guidelines (the “Draft Guidelines”) for public comment. Once finalized, the Draft Guidelines, which are designed to help the public, business community, practitioners and courts understand how the Agencies identify potentially illegal mergers, will replace the US Horizontal Merger Guidelines issued in 2010 and the US Vertical Merger Guidelines issued in 2020.Continue Reading United States Antitrust Agencies Announce New Merger Guidelines: Overview and Implications for Canada