Director Releases Bulletin on Strategic Alliances

OTTAWA, November 23, 1995 — George N. Addy, Director of Investigation and Research under the Competition Act, released today an enforcement Information Bulletin entitled STRATEGIC ALLIANCES UNDER THE COMPETITION ACT. The document is being released after an extensive consultation process with industry, legal counsel, economists and government.

The principal objective in issuing the Bulletin is to provide guidance regarding the Director's enforcement policy with respect to strategic alliances under the Competition Act, and especially under the merger review provisions and the criminal conspiracy provision.

"Uncertainty regarding the legality of strategic alliances may increase the risk that opportunities to create alliances which are pro-competitive may not be pursued. To reduce this uncertainty, I am issuing this policy statement to provide general guidance on my enforcement approach to strategic alliances under the Competition Act," Mr. Addy said.

The Bulletin reflects the Director's overall compliance policy of informing the legal and business communities, both Canadian and international, about the Director's policies and practices regarding the enforcement and administration of the Act. The Bureau has issued a series of enforcement guidelines on such subjects as mergers, price discrimination, predatory pricing, misleading advertising and compliance.