Annual Report 1994/95 - Discontinued inquiries: Civil Matters

Failure to comply with certain orders

The NutraSweet Company The Director commenced an inquiry in April 1991 following receipt of information that The NutraSweet Company (NutraSweet) had failed to comply with the Order made by the Competition Tribunal on October 4, 1990, thereby violating section 74 of the Competition Act. Subsequent discussions were held between the Director's staff and counsel and officials and counsel for NutraSweet. As a result, NutraSweet agreed to send letters approved by the Director, explaining to customers the provisions of the Tribunal's Order with regard to the removal of the exclusive use provisions in current contracts, and the removal of the allowance or discount for the use of the NutraSweet logo. NutraSweet also outlined in these letters the approach it would follow with regard to the drafting of new contracts, which would be in compliance with the Tribunal's Order. Accordingly, the inquiry was discontinued.

Xerox Canada Ltd. The Director commenced an inquiry in July 1992 following receipt of information that Xerox Canada Ltd. (Xerox) had failed to comply with the order made by the Competition Tribunal on November 2, 1990, thereby violating section 74 of the Competition Act. However, during the examination of the matter, Xerox changed its policy in Canada to conform to the policy of its U.S. parent. Accordingly, the inquiry was discontinued.

Abuse of dominant position

Commercial Printing The Director received a six resident application for an inquiry in 1992, alleging that a commercial printer engaged in a number of anti-competitive acts aimed at eliminating a competitor in the commercial printing market in the Toronto area. It was alleged that the practices contravened a number of provisions of the Act, in particular, the abuse of dominant position provisions and the criminal provisions of subsections 45(1) and 61(6) of the Act. However, the informa tion obtained during this inquiry did not lead the Director to believe on reasonable grounds that an offence under the criminal provisions of the Act had been committed or that grounds existed for the making of an order by the Competition Tribunal. Accordingly, the inquiry was discontinued.

Potato Processing The Director received a six-resident application for an inquiry in June 1994, alleging that a potato processing firm in the province of Prince Edward Island had substantial control of the processing potato market in that province and that the erection of a potato storage facility and the expansion of the firm's processing plant constituted a practice of anti-competitive acts, contrary to section 79 of the Act. However, an examination of the matter did not provide evi dence that the erection of the facility would change the dynamics of the bargaining process between the Potato Processing Council and the two potato processors. Moreover, a review of the documents and information provided by the Applicants did not indicate that the erection of the facility and the expansion of the processing facilities would constitute a practice of anti-competitive acts as envis aged under section 79. Accordingly, the inquiry was discontinued.

Refusal to deal

Telecommunications Equipment The Director commenced an inquiry in April 1990 follow ing the receipt of a complaint that a telecommunications firm refused to supply a business with parts and related services for repairing and refurbishing terminal equipment manufactured by the telecom munications firm. The telecommunications firm was subsequently informed of the Director's inten tion to file an application with the Competition Tribunal for an order requiring that the telecommuni cations firm accept the business as a customer. Subsequent negotiations between the two companies resulted in a supply arrangement being reached. Accordingly, the inquiry was discontinued.