Tribunal Decision Preserves Competition in Waste Disposal Services

OTTAWA, October 11, 2001 — Today, the federal Competition Tribunal publicly released its decision in a merger case involving the largest waste management firm in Canada, Canadian Waste Services Inc. The Tribunal accepted the Competition Bureau's position that Canadian Waste should not retain ownership of the Ridge Landfill and has ordered Canadian Waste to divest this landfill.

"This divestiture will ensure competitive prices for the disposal of industrial, commercial and institutional waste generated in the Greater Toronto Area and the Chatham-Kent area," said Gaston Jorré, Senior Deputy Commissioner of Competition, Mergers Branch.

Canadian Waste Services Inc. already owns six landfills in southern Ontario. In March 2000, it acquired the Ridge Landfill located in Chatham, Ontario, from Browning-Ferris Industries Ltd. The Competition Bureau challenged the purchase after concluding that it would likely result in higher prices for customers of waste disposal services in the Greater Toronto Area and Chatham-Kent. The Bureau filed an application with the Tribunal on April 26, 2000.

The acquisition of the Ridge Landfill was initially part of a much larger transaction. However, through negotiations, the Bureau and Canadian Waste were able to resolve all other outstanding competition issues and jointly submitted a detailed Statement of Agreed Facts to the Tribunal. This resulted in much more focussed litigation, thereby saving both time and resources during the Tribunal process.

Following the contested hearing in November 2000, the Tribunal released its judgement in March 2001, ruling that the acquisition of the Ridge Landfill by Canadian Waste Services Inc. would lead to a substantial lessening and a substantial prevention of competition in the provision of disposal services in both the Greater Toronto Area and the Chatham-Kent area. A three-day hearing was subsequently held in June 2001 to determine the appropriate remedy. The Tribunal's decision on remedy that was publicly released today supports the Commissioner's view that a behavioural remedy would be inappropriate in this case.

"We are pleased with the Tribunal's decision since it offers the best solution to the competition problem that would have arisen if Canadian Waste were allowed to retain the Ridge Landfill. An independently owned Ridge Landfill will allow businesses in the GTA to benefit from much needed competition among landfills within southern Ontario", said Gaston Jorré, Senior Deputy Commissioner of Competition. "At the same time, it will prevent the creation of a monopoly provider of disposal services for businesses in Chatham-Kent."

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 more information, please contact:

Tim Weil
Senior Communications Advisor
Competition Bureau
Tel: 819-953-9271 or 613-296-2189 (cell.)

General Public Enquiries, please contact:

Competition Bureau's Information Center
819-997-4282 or toll-free 1-800-348-5358