Broadening the scope under which Interim Orders may be issued by the Competition Tribunal

Backgrounder

June 21, 2002

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To Prevent Irreparable Harm

Section 103.3 of the Competition Act gives the Competition Tribunal the authority to issue an Interim Order to prevent irreparable harm to competition, while the investigation of a complaint by the Commissioner is still underway.

Application Ex Parte by the Commissioner

An order may be issued upon application made ex parte by the Commissioner of Competition in respect of all reviewable matters under Part VIII of the Competition Act except mergers and specialization agreements.

In his application, the Commissioner must certify that an inquiry is being made under paragraph 10(1) (b) of the Competition Act. Before the Competition Tribunal issues an Interim Order, it has to find that the conduct or the measures taken are likely to:

• cause injury to competition that cannot be remedied by the Tribunal;
• eliminate a competitor; or
• cause a person to likely suffer a significant loss of revenue or market share, or suffer some other harm that cannot be remedied by the Tribunal.

Duration

The Interim Order will have effect for an initial period of 10 days. It may be extended for two periods of 35 days each on 48 hours notice to each person against whom the interim order is directed. A further extension may be granted by the Competition Tribunal, upon application by the Commissioner on notice, until such time as the Commissioner is able to receive and review the information needed to determine whether to make an application before the Competition Tribunal.

Confirming or Setting Aside the Interim Order

The person against whom an Interim Order has been made may apply to the Competition Tribunal in the first 10 days during which the order has effect to have it varied or set aside.