Antitrust Laws In Canada: Who's In Charge?

who is in charge of enforcing antitrust laws in canada

Canada's antitrust laws, contained in the Competition Act, are enforced by the Competition Bureau, which is overseen by the Commissioner of Competition. The Commissioner is responsible for administering and enforcing the Competition Act, which includes reviewing mergers and challenging anti-competitive agreements between competitors. The Bureau is also in charge of enforcing other consumer protection laws, such as the Consumer Packaging and Labelling Act and the Textile Labelling Act. Recent amendments to the Competition Act, such as Bill C-59 and Bill C-56, have expanded the rights of private parties to initiate proceedings and recover damages, potentially privatizing substantial portions of Canadian competition law enforcement.

Characteristics Values
Name of the antitrust law Competition Act
Who enforces the law The Commissioner of Competition, the Competition Bureau, and the Public Prosecutions Service of Canada
What does the law apply to All economic activities (both goods and services) except those specifically exempted (e.g., collective bargaining, amateur sports, securities underwriting, or activities subject to other legislation)
Recent amendments Bill C-19 (June 23, 2022), Bill C-56 (September 21, 2023), and Bill C-59
Recent changes Expansion of reviewable practices, lowered threshold for initiating private tribunal proceedings, and easier test for proving abuse of dominance
Primary purpose To maintain and encourage competition in Canada by addressing mergers, criminal matters, and reviewable practices
Examples of anti-competitive acts Price-fixing, bid-rigging, market allocation agreements, and predatory pricing

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The Competition Act

Competition laws in Canada are contained in a federal statute called the Competition Act. The Act is administered and enforced by the Commissioner of Competition, along with their staff, the Competition Bureau. The Competition Bureau is an independent law enforcement agency that protects and promotes competition for the benefit of Canadian consumers and businesses.

The Commissioner of Competition reviews mergers to determine whether they are likely to result in a substantial prevention or lessening of competition. This involves considering factors such as the merging parties' market share, the availability of substitutes, network effects, and the impact on price and non-price competition.

The Competition Tribunal is a specialized administrative body with exclusive jurisdiction to hear certain competition matters. It provides a platform for private parties to initiate proceedings and seek remedies in cases of anti-competitive behaviour.

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The Commissioner of Competition

Antitrust laws in Canada are contained in the Competition Act, which is administered and enforced by the Commissioner of Competition. The Commissioner is responsible for reviewing mergers to determine whether they are likely to result in a substantial prevention or lessening of competition. This analysis involves considering factors such as market share, barriers to entry, product substitutes, and the impact on price and non-price competition. The Commissioner is also responsible for enforcing the Competition Act's provisions on anti-competitive conduct, such as price-fixing, bid-rigging, and cartel offences.

The Competition Act contains both criminal and civil provisions aimed at preventing anti-competitive practices. It applies to all economic activities involving goods and services, except those specifically exempted, such as collective bargaining, amateur sports, and securities underwriting. The Act also includes provisions related to advertising and marketing matters, such as false and misleading advertising.

In recent years, there have been significant changes to Canada's competition law regime, with amendments made through bills such as C-19, C-56, and C-59. These amendments have expanded the remedies available for challenging anti-competitive agreements and lowered the hurdles for private parties to initiate proceedings. The changes aim to modernise the Act and adapt it to the dynamic nature of competition law globally.

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The Competition Bureau

Antitrust laws in Canada are contained in the federal statute, the Competition Act. The Act is administered and enforced by the Commissioner of Competition and their staff, the Competition Bureau, which is part of the Innovation, Science and Economic Development Canada portfolio. The Competition Bureau is responsible for enforcing the Competition Act, which includes preventing anti-competitive practices in the marketplace. The Act applies to all business activities in Canada, including mergers, criminal matters, and reviewable practices.

The Competition Act also contains provisions related to advertising and marketing, including criminal provisions addressing false and misleading advertising. The Act has recently undergone significant changes, with amendments in 2022 and proposed changes in 2023, aiming to modernise the law and address the dynamic nature of competition in Canada. These changes have expanded the scope of reviewable practices and lowered the threshold for private parties to initiate legal proceedings.

In addition to the Competition Act, the Competition Bureau is also responsible for enforcing other legislation, including the Consumer Packaging and Labelling Act (for non-food products), the Textile Labelling Act, and the Precious Metals Marking Act. The Bureau works closely with the Public Prosecutions Service of Canada, and while most provisions can be enforced by the Bureau, private parties also have the right to initiate legal proceedings and seek compensation for damages caused by violations of the Act.

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The Public Prosecutions Service of Canada

The Public Prosecution Service of Canada (PPSC) is a national, independent, and accountable prosecuting authority. It was established in 2006 as an agency independent of the Department of Justice Canada. Its main objective is to prosecute federal offences and provide legal advice and assistance to law enforcement. The PPSC's role is to prosecute offences that fall under federal jurisdiction, such as those stemming from the Income Tax Act, Fisheries Act, Excise Act, Customs Act, Canada Elections Act, Canadian Environmental Protection Act, and the Competition Act.

The PPSC is headed by the Director of Public Prosecutions, who is responsible for the administration and enforcement of the Director of Public Prosecutions Act. The current Director of Public Prosecutions is George Dolhai, who is based in the Ottawa office. The PPSC also has regional offices in various provinces and territories, each with its own Chief Federal Prosecutor. These include:

  • British Columbia (Vancouver)
  • Manitoba (Winnipeg)
  • Alberta (Edmonton)
  • Atlantic (Halifax) with local offices in Moncton and St. John's
  • Ontario (Toronto) with local offices in Brampton and Kitchener
  • Quebec (Montreal)
  • Nunavut (Iqaluit) with a local office in Yellowknife, Northwest Territories
  • Northwest Territories (Yellowknife)

The PPSC has been involved in several notable cases, including the SNC-Lavalin affair, where there was an allegedly improper request from the Prime Minister's Office to the Attorney General of Canada to override a decision by the Director of Public Prosecutions. Another instance was an Ontario public prosecution dealing with a Hamilton West—Ancaster—Dundas candidate selection election by the Progressive Conservative Party of Ontario. The PPSC also provides guidance to Canadians, such as during the COVID-19 legal backlog, when it issued recommended guidelines for prioritizing Canadian drug offences for trial, focusing on diversion programs.

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The Tribunal

The Competition Tribunal, or "the Tribunal", is a specialised administrative body with exclusive jurisdiction to hear certain competition matters in Canada. The Tribunal has the authority to order parties engaging in anti-competitive conduct to pay an amount not exceeding the value derived from the conduct. This amount is then distributed to the party who initiated the proceeding, as well as any other affected persons. The Tribunal's expanded powers under Bill C-59 have the potential to privatise substantial portions of Canadian competition law enforcement.

The Competition Act, which contains both criminal and civil provisions, aims to prevent anti-competitive practices in the marketplace. The Act applies to all economic activities involving goods and services unless specifically exempted. Exemptions include collective bargaining, amateur sports, securities underwriting, and industries where price or output is regulated by federal or provincial governments. The Act is administered and enforced by the Commissioner of Competition, the Competition Bureau, and the Public Prosecutions Service of Canada.

The Commissioner of Competition, appointed by the Governor in Council, is responsible for administering and enforcing the Competition Act. The Commissioner reviews mergers to determine their potential impact on competition. This analysis considers factors such as market share, the availability of substitutes, network effects, barriers to entry, and the potential removal of effective competitors. The Commissioner's staff, the Competition Bureau, is part of the Innovation, Science and Economic Development Canada portfolio.

Frequently asked questions

The Competition Act, which contains Canada's antitrust law, is administered and enforced by the Commissioner of Competition and their staff, the Competition Bureau.

The Competition Bureau is responsible for the administration and enforcement of the Competition Act, the Consumer Packaging and Labelling Act (for non-food products), the Textile Labelling Act, and the Precious Metals Marking Act. The Bureau is part of the Innovation, Science and Economic Development Canada portfolio.

Yes, most provisions of the Act can also be enforced by private parties. Private parties have the right to sue to recover actual damages suffered as a result of a violation of the Act's criminal provisions.

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