Merger Remedies

Remedies are required when a merger or proposed merger is likely to prevent or lessen competition substantially in one or more relevant markets. In such cases, the Commissioner of Competition will take remedial action to prevent a merged entity, alone or in coordination with other firms, from having the ability to exercise market power, as a result of the merger. When the Bureau believes that a merger is likely to prevent or lessen competition substantially, it can either apply to the Competition Tribunal to challenge it under section 92 of the Competition Act, or negotiate remedies with the merging parties in order to resolve the competition concerns by consent.

The Bureau has issued certain guidance documents to clarify its approach to merger remedies:

Information Bulletin on Merger Remedies in Canada

The Bulletin provides guidance to businesses and legal counsel on the objectives and general principles applied by the Bureau when it seeks, designs, and implements remedies to resolve competition concerns arising from proposed transactions.

Draft Bulletin on Efficiencies in Merger Review

The purpose of the Bulletin is to provide, as a supplement to the Merger Enforcement Guidelines, practical guidance to assist merging parties in understanding the Bureau's enforcement approach in this area.

In particular, this Bulletin describes the information that is typically useful to the Bureau in its analysis of efficiency claims and clarifies the Bureau's approach to certain enforcement policy issues such as forgone efficiencies, and gains in efficiency that are likely to be generated outside of Canada. The Bureau has prepared this draft as part of its ongoing efforts to clarify and publish guidance about its enforcement policies and practices.