Annual Report — Maintain a Modern Approach to Competition Law

The Bureau regularly reviews the Competition Act and the Bureau's policies and enforcement guidelines to ensure they remain current with developing jurisprudence and economic thought. In this way, consumers and businesses can be assured of receiving the full benefit of a competitive marketplace. A modern, up-to-date legislative framework also enhances Canada's ability to compete internationally and to attract foreign investment.

In addition, three standards-based statutes, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act, ensure the accuracy and adequacy of information companies provide to consumers.

The Competition Bureau believes strongly in the value of consultation on proposed changes to both the legislation and the Bureau's approach to enforcing it. Consequently, the Bureau actively seeks the opinion of its stakeholders on a wide variety of issues.

Immunity Information Bulletin

On September 21, 2000, the Bureau released an information bulletin on the immunity program under the Competition Act. In the context of the Act, the Attorney General provides immunity from prosecution for criminal offences at the request of the Commissioner in exchange for cooperation or assistance. The bulletin outlines the policy and procedures individuals and companies must follow to be eligible for this immunity, and was designed to provide stakeholders and the public with a clearer and more transparent process at a time when requests for immunity are becoming more complicated.

The Bureau released a draft of the information bulletin for comment on February 17, 2000. In finalizing the bulletin in the summer of 2000, the Bureau took comments and suggestions from interested stakeholders into consideration.

The bulletin reflects current practices employed jointly by the Bureau and the Attorney General. It provides an explanation of the distinct roles of the Commissioner and the Attorney General, and the conditions under which the Commissioner considers recommending immunity to the Attorney General.

Public Consultations

On April 17, 2000, the Commissioner, at the request of the Minister of Industry, asked the Public Policy Forum to hold public consultations on proposed initiatives to amend the Competition Act and Competition Tribunal Act. This process reflects the Competition Bureau's commitment to ongoing legislative renewal to ensure that Canada's competition policy remains effective in a rapidly changing global marketplace.

The purpose of the consultations was to determine the level of support for the underlying principles of proposed amendments to the Acts in four private members' bills. Consultations were based on a discussion paper the Competition Bureau prepared. The proposals set out in the private members' bills do the following:

To make the consultation process as open and meaningful as possible, the Competition Bureau employed a novel way of soliciting the public's views: the Public Policy Forum developed an interactive Web site linked to the Competition Bureau home page. A broad range of stakeholders, including small, medium and large businesses, consumer groups, parliamentarians, academics and legal experts, were invited to submit their views electronically or via traditional methods.

Stakeholders were also invited to 12 roundtable sessions held in Halifax, Montréal, Ottawa, Toronto, Winnipeg, Calgary and Vancouver in August and September 2000.

Stakeholders' submissions, along with a discussion paper, reports on the roundtable discussions, and the final report are available on the Public Policy Forum Web site (http://www.ppforum.com). Stakeholders welcomed this opportunity to participate and to discuss competition policy.

The Public Policy Forum submitted its final report to the Commissioner of Competition in December 2000. The Forum identified consensus for all proposals, with the exception of two: clarifying the list of anti-competitive behaviours to illustrate abuse of dominance, and modernizing the conspiracy provision. With respect to conspiracy, the Forum concluded that the proposal was attractive to the majority of participants, but more discussion and analysis were needed. Concerning the proposal for private access to the Competition Tribunal, the Forum concluded that a consensus might be possible if some changes were made to the proposal and strategic litigation could be prevented.

The Minister of Industry examined the Public Policy Forum's final report to determine the feasibility of amending the Competition Act. Bill C-23, an Act to Amend the Competition Act and the Competition Tribunal Act, was introduced in the House of Commons on April 4, 2001, and was referred to the House of Commons Standing Committee on Industry, Science & Technology on May 3, 2001, prior to second reading.

House of Commons Standing Committee on Industry: Review of the Competition Act

In 1999-2000, the House of Commons Standing Committee on Industry, Science & Technology began hearings to review the anti-competitive pricing provisions of the Competition Act. The hearings continued during 2000-2001, and on June 14, 2000, the committee issued an interim report. The report is based in part on a study of the pricing provisions of the Competition Act prepared by J. Anthony VanDuzer, an associate professor of common law at the University of Ottawa, and his colleague, Gilles Paquette.

In addition, when finalizing its review of the Competition Act in May 2000, the committee took into consideration the principles underlying the four private members' bills that were the subject of the Public Policy Forum consultations.

The committee's preliminary findings are that the government, after consulting with the public, should consider whether to do the following:

A full copy of the report is available on the Internet at http://www2.parl.gc.ca/CommitteeBusiness/Default.aspx?Language=E&Mode=1 . 

Amendments to the Competition Act

Following the acquisition of Canadian Airlines by Air Canada, the government adopted new legislation governing the airline industry. Bill C-26, an Act to Amend the Canada Transportation Act, the Competition Act, the Competition Tribunal Act and the Air Canada Public Participation Act and to Amend Another Act in Consequence, came into force on July 5, 2000. This Act, along with the subsequent enactment of airline regulations under section 78 of the Competition Act, on August 23, 2000, provided the Bureau with new legislative tools to address concerns related to the conduct of a dominant carrier in this industry. Further information about this subject can be found in chapter 5 of this report (see page 28).

Private Members' Bills

The growing number of private members' bills dealing with competition introduced in the House of Commons is evidence of the continued interest in this area, and reflects the increasing importance of maintaining a modern competition policy so that Canada can compete and prosper in a rapidly changing global economy. The Competition Bureau welcomes the challenge to improve and advance competition law policy in Canada. Listed below are Bills introduced during 2000-2001 — the second session of the 36th Parliament and the first session of the 37th Parliament. These Bills proposed amendments to, or would affect the application of, the Competition Act and Competition Tribunal Act.

2^nd Session, 36^th Parliament

Bill	Subject
Bill C-471	Proposes to amend the Competition Act to provide for international mutual assistance. Proposes to amend the Competition Tribunal Act to provide a mechanism for references before the Competition Tribunal.
Bill C-472	Proposes to amend the Competition Act to modernize the conspiracy provisions, to give individuals the right to make private applications to the Competition Tribunal for refusal to deal, exclusive dealing, tied selling and market restriction, and to introduce cease and desist powers to allow the Commissioner of Competition to deal with abuse of dominance concerns. Proposes to amend the Competition Tribunal Act to broaden the powers of the Competition Tribunal to include cost awards and summary dispositions.
Bill C-509	Proposes to amend the Competition Act to clarify, in the case of a merger, when gains in efficiency are expected or when the merger would create or strengthen a dominant market position.

 

1^st Session, 37^th Parliament

Bill	Subject
Bill C-207	Proposes an energy price commission to regulate the wholesale and retail price of motor fuels, heating oil and electric power.
Bill C-226	Proposes to amend the merger approval process under the Bank Act allowing the Minister of Finance to approve a merger in specific circumstances.
Bill C-248	Proposes to amend the Competition Act to clarify, in the case of a merger, when gains in efficiency are expected or when the merger would create or strengthen a dominant market position.
Bill C-276	Proposes to amend the Competition Act to add other items to the current list of examples of anti-competitive conduct contained in section 78 of the abuse of dominant position provisions.
Bill C-283	Proposes to establish an energy price commission to regulate the wholesale and retail price of energy.