Competition Law at Canada
Competition Law in Canada is primarily governed by the Competition Act, a federal law that aims to maintain and encourage fair competition in the Canadian marketplace. Here's an overview of its key aspects:
🔹 1. Governing Authority
Competition Bureau of Canada: An independent law enforcement agency that administers and enforces the Competition Act, the Consumer Packaging and Labelling Act, and other related laws.
🔹 2. Key Provisions of the Competition Act
Anti-competitive Practices
Prohibits agreements between competitors to fix prices, rig bids, allocate markets, or restrict output (also known as cartel behavior).
Criminal penalties can include fines and imprisonment.
Abuse of Dominant Position
Prevents companies with a dominant market position from using their power to engage in anti-competitive practices that harm competitors or consumers.
Merger Review
Mergers and acquisitions are reviewed to ensure they do not substantially lessen or prevent competition in the market.
Deceptive Marketing Practices
Prohibits false or misleading advertising, performance claims not based on adequate testing, bait-and-switch selling, and pyramid schemes.
Price Maintenance
It’s illegal to influence or fix resale prices or to refuse supply to a retailer based on their pricing policy.
🔹 3. Enforcement Mechanisms
Civil and Criminal Proceedings: Depending on the nature of the violation, the Bureau may pursue civil remedies or criminal charges.
Penalties:
Criminal: Fines up to CAD 25 million and/or imprisonment up to 14 years.
Civil: Administrative monetary penalties and orders to cease conduct.
🔹 4. Leniency and Immunity Programs
The Bureau offers Immunity and Leniency Programs for parties that self-report their involvement in cartels or other criminal offenses.
🔹 5. Recent Trends
Increased scrutiny of digital markets and big tech.
Stronger focus on environmental and sustainability claims in advertising.
Active merger reviews in sectors like telecom, retail, and pharmaceuticals.
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