Annual Report 1994/95 - Discontinued inquiries: Criminal Matters

Industrial Cleaners 50(1)(c) This inquiry was started in 1986 following receipt of a complaint from a company in New Brunswick engaged in the supply of industrial cleaning services in the Atlantic provinces alleging that the parties were engaging in predatory pricing. During the course of the inquiry searches and interviews were conducted and submissions were received from counsel for the accused.

The evidence did not establish an offence under paragraph 50(1)(c).

The inquiry was discontinued on March 30, 1995.

Canning and Bottling of Soft Drinks This inquiry was commenced on February 23, 1994 following receipt of an application by six residents of Canada alleging that four suppliers of canning materials had entered into an agreement with a soft drink manufacturer to lessen competition unduly in the market for canning materials used in the production of soft drinks.

No evidence was provided by the applicants to establish that the alleged agreement existed and further information obtained from other sources during the course of the inquiry indicated that the suppliers' materials pricing policy had no effect on competition in the market for canning materials.

The inquiry was discontinued on March 30, 1995.

Surcharging of Automobiles Parts This inquiry commenced on April 5, 1992 following information to the effect that all the dealers of a major automobile manufacturer (the Firm) in a city in Alberta were applying a surcharge to the suggested retail price of automobile parts. Further, it was alleged that the surcharge resulted from an agreement among all the Firm's dealers in this same city.

After a series of meetings between staff of the Bureau and counsel for the dealers, the Firm under took to write all its Canadian dealers stating that the Bureau had concerns with groups of dealers in Canada collectively agreeing to impose surcharges on the price of the Firm's captive parts. The Firm's letter explained the law concerning the imposition of agreed surcharges by a dealer group and the legal risks involved in engaging in such conduct. The Firm's letter also stated that any dealers who engage in such conduct might be in breach of the Dealer Sales and Service Agreement with the Firm and this could have commercial repercussions. Such repercussions could include the cancellation of the Firm's franchise agreement.

The inquiry was discontinued on March 17, 1995.

Cement 50(1)(b) This inquiry commenced on May 5 1993 following a complaint that in an area of Ontario two vertically integrated cement companies were engaged in a policy of predatory pricing and geographic price discrimination with the object of putting a company out of business.

Subsequent investigation did not produce sufficient information to provide grounds for the exercise of formal powers or to lead to a conclusion that the alleged pricing practices had the effect or tendency of substantially lessening competition or eliminating a competitor or were designed to have that effect as described in s. 50(1)(b) of the Competition Act.

The inquiry was discontinued on March 21 1995.

Tour Operators This inquiry was commenced on October 30, 1989 when it was alleged that the major tour operators and travel agents in Canada had conspired to eliminate competition from the market by threatening to boycott airlines and hotels which supplied it.

No evidence was found of an agreement or arrangement among tour operators and or travel agents.

The inquiry was discontinued on March 17, 1995.

Change of Control of Teleglobe Inc. 45 & 92 This inquiry was commenced on January 12, 1993 to examine the change in control at Teleglobe Canada Inc. and the subsequent shift in competitive strategy by its subsidiary firm, Teleglobe Canada Inc.

The inquiry examined activities in light of the merger and conspiracy provisions of the Act. Information obtained during the inquiry would not support the allegations that section 45 and 92 of the Act had been violated.

The inquiry was discontinued on March 16, 1995.

Travel Agents This inquiry was commenced in 1984 following allegations that travel agents in a city in Quebec had agreed to put pressure on travel wholesalers to refuse to provide all-inclusive package deals to a firm that specialized in last minute and discounted trips. The allegations were made in regard to the conspiracy and price maintenance provisions of the Act .

Information gathered during the inquiry however, showed that there was insufficient evidence to bring this matter to the Attorney General.

The inquiry was discontinued on March 16, 1995.

Margarine in Québec 50(1)(b), 50(1)(c) & 79 This inquiry was commenced on December 23, 1993 following receipt of an application from six Canadian residents alleging illegal commercial practices with respect to paragraphs 50(1)(b) and 50(1)(c) and section 79 of the Act by a major margarine manufacturer.

Information obtained during the enquiry did not support the allegations under the subject sections of the Act.

The inquiry was discontinued on October 26, 1994.

Food Equipment 50(1)(a) This inquiry was commenced on December 14, 1993 following receipt of an application from six Canadian residents alleging refusal of a food equipment group to make available a volume discount on terms equal to those offered to competing purchasers of like quantity. The evidence obtained during the inquiry which was examined with respect to paragraph 50(1)(a) of the Act, determined that the distributor was not practicing price discrimination.

The inquiry was discontinued on June 22, 1994.

Concrete-New Brunswick 50(1)(b) & 50(1)(c) This inquiry was commenced in June 1987 under paragraphs 50(1)(b) and (c) of the Competition Act following allegations that a concrete producer had undertaken a practice of predatory pricing in the Woodstock and Grand Sault regions of New Brunswick. Searches were completed in June 1987.

Evidence obtained during the inquiry did not show that the manufacturer had engaged in practices that prevented or lessened substantially competition.