Competition Bureau reaches agreement with Canada Pipe Company Ltd.

Ottawa, December 20, 2007 — The Competition Bureau announced today that it has filed a consent agreement with the Competition Tribunal in the Canada Pipe Company Ltd. case.

Under the terms of the agreement, Canada Pipe has agreed to implement a new rebate program that does not require participants to purchase cast iron drain, waste and vent products exclusively from Canada Pipe in order to qualify for discounts and rebates.

The new program will be offered to distributors as an alternative to Canada Pipe's existing loyalty program, which will continue to be offered to Canadian distributors. The programs relate to the supply of cast iron pipe, cast iron fittings and mechanical joint couplings for drain, waste and vent applications. These products are used in buildings to carry waste and drain water and to provide ventilation for drainage and waste systems.

"The structure of the new rebate program will allow for greater competition in the marketplace by providing more opportunities for entry and expansion by competing suppliers and more choices for distributors," said Sheridan Scott, Commissioner of Competition.

The Bureau initiated its inquiry following complaints that Canada Pipe was abusing its dominant position in markets across Canada through its loyalty program. Distributors were required to purchase all of their cast iron pipe, cast iron fittings and mechanical joint couplings for drain, waste and vent applications exclusively from Canada Pipe to obtain substantial discounts and rebates.

The matter was originally filed before the Competition Tribunal in October 2002. In February 2005, the Tribunal concluded that Canada Pipe had not abused its dominant position. The Bureau appealed this decision. In June 2006, the Federal Court of Appeal clarified the analysis of the exclusive dealing and abuse of dominance provisions of the Competition Act and sent the matter back to the Competition Tribunal for redetermination. This consent agreement concludes the Bureau's inquiry into this matter and the redetermination proceedings.

The Competition Bureau is an independent law enforcement agency. We contribute to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice.

The consent agreement can be found on the Competition Tribunal's Web site.

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