Competition Bureau files an application with Competition Tribunal against plumbing manufacturer

OTTAWA, November 1, 2002 — The Competition Bureau announced that it has filed an application with the Competition Tribunal for an order prohibiting Canada Pipe Company Ltd./Tuyauteries Canada Ltée (Canada Pipe) from engaging in anti-competitive acts through its Bibby Ste-Croix Division. The anti-competitive acts relate to the supply of cast iron pipe, fittings and mechanical joint (MJ) couplings for drain, waste and vent applications (DWV) usually used in the construction of commercial, institutional, industrial and high rise residential buildings.

The alleged conduct by Bibby began in January 1998, following the acquisition of Bibby by Canada Pipe, and continues to occur. The Bureau believes that Bibby's anti-competitive acts have resulted and are likely to result in higher prices.

The Bureau initiated an inquiry in May 2000, following complaints that Bibby was abusing its dominant position in the supply of DWV cast iron pipe, fittings and MJ couplings in markets across Canada by introducing a loyalty program which has the impact of locking in its customers and eliminating its competitors. Bibby requires that its clients purchase all their DWV products exclusively from it in order to obtain substantial rebates.

In an application under the abuse of dominance provisions (s.79) and exclusive dealing provisions (s.77) of the Competition Act, the Commissioner of Competition is asking the Tribunal to order Canada Pipe to cease the alleged conduct, to ensure that similar conduct will not continue in the future, to prohibit Canada Pipe from being part of any acquisitions of DWV cast iron businesses in Canada for the next three years and, to notify the Bureau of any such acquisitions for the three years following the initial three-year period.

"By promoting and stimulating competition, the order sought by the Commissioner of Competition will benefit wholesalers and builders of high rise residential, commercial, institutional and industrial buildings by providing better price and product choices and will also provide opportunities to small and medium-sized manufacturers and importers," said André Lafond, Deputy Commissioner of Competition.

The Competition Bureau is an independent law enforcement agency that promotes and maintains fair competition so that all Canadians can benefit from competitive prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.

For media enquiries, please contact:
Maureen McGrath
Senior Communications Advisor
Communications Branch
819-953-8982, or 613-296-2187 (cell)

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Information Centre
Competition Bureau
1-800-348-5358