Competition Bureau Canada
Symbol of the Government of Canada

Strategic Alliances - Part 4: Public Education Program/Compliance


Compliance with the Act is the Director's overall objective. This is accomplished through a number of instruments and can best be achieved when business people have a sound understanding of the provisions of the Act. The Director places a gr eat deal of emphasis on communications and education to foster a better understanding of the Act and its application, and has implemented an open-door, fix-it-first approach when dealing with the business community. In light of the various provisio ns which may apply to strategic alliances, parties may wish to approach the Bureau under the Program of Advisory Opinions to determine the Act's applicability.

4.1 The Communications and Education Program

The Director and staff of the Bureau undertake speaking engagements on a variety of competition matters. Bureau staff often conduct seminars for businesses and associations on topics of particular interest to them, such as: the detection and prevention of bid-rigging when calling for tenders; the notification and review procedures for large mergers; and the preparation of promotional material that conforms to the misleading advertising provisions of the Act. Other issues addressed include the appli cation of the Act to joint ventures, specialization agreements and other strategic arrangements contemplated to respond to the demands for structural adjustment in the economy. These sessions, while general in approach, often lead to further, more specific, consultation through the Program of Advisory Opinions. The general education and communications program of the Director is supplemented by advisory opinions and information contacts which are designed to facilitate compliance with the Act in particular situations.

4.2 Advisory Opinions

The Director facilitates compliance by providing advisory opinions to those who wish to avoid coming into conflict with the Act. Under this program, company officials, lawyers, and others may request an opinion on whether the implementation of a pr oposed business plan or practice would comply with the Act. Opinions take into account previous jurisprudence, previous opinions and the stated policies of the Director, especially those set out in published Enforcement Guidelines. Under this progr am, the Director provides advisory opinions in relation to the specific set of facts presented by the parties. Hence, the degree of comfort provided by the Director in offering an opinion on a specific alliance will be directly proportional to the informa tion the parties provide on the likely competitive effects of the alliance.

In providing an opinion, the Director neither regulates conduct nor pronounces on the legality of the proposal. Instead, the Director will indicate whether a proposal is likely to provide grounds to initiate an inquiry under the Act. The parties re main free to adopt or pursue a particular course of action notwithstanding a negative opinion from the Director with the understanding that they may, following investigation, be challenged by either a referral to the Attorney General for prosecution under the criminal provisions or an application filed with the Competition Tribunal under the reviewable provisions.

Advance Ruling Certificates are also available for parties to a proposed merger who wish assurance that it will not give rise to proceedings under the merger provisions of the Act.

Share this page

To share this page, just select the social network of your choice: